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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (3998)	9/15/1999 10:09:00 PM
From: Herschel Rubin	Respond to of 10027

Gary, I am also puzzled by BBRS's $0.31 estimate for Q3! Doesn't make sense unless NITE's margins are declining because NITE indeed appears to be headed toward significantly higher Q3 volume than Q1. The primary difference in Q3 expense might be increased advertising costs, but would that really cause such a dent in earnings? We know BBRS is fond of NITE. They're not stupid either. They know this summer lull is a transient phenomenon in a huge growth sector -- which is one of the best times to buy. The way they cut estimates lower, while mentioning their CYA disclaimer was very telling: "While we are revising our estimates downward, we remind investors that if volume and volatility levels pick-up again, Knight's revenues and earnings will rise commensurately," said Appleby. My bet is that they're accumulating NITE in the wake of the impact of their estimate reduction. Bob Kim: Seems to me, we HAVE been having high volatility in the past few weeks. Perhaps current volatility doesn't stack up against that which occurred during April's high-watermark. Any take on what KP said about effects of a slowdown in volume and volatility at today's tech panel? How is NITE handling the situation? Have they been able to increase market share to offset volume slowness?