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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Brooks Jackson who wrote (10307)	9/19/1999 8:49:00 AM
From: AugustWest	Read Replies (1) \| Respond to of 20297

Yeah, I wish he would have clarified the situation also. But it could have also been part of selective reporting(no offense). He(Lewis) might not have been posed with the float issue. I liked the last two paragraphs too. "This all gets into the psychology of why people do what they do," said Robert Tetenbaum, executive vice president of First Manhattan Consulting Group. And of course, marketers will always have to grapple with people like Robert Mitchell, an economist in the District, who simply likes the old-fashioned technology of pen and paper. "I can write a check whenever I want, and the mail works very well," he said. "It's very convenient." Remindes me of that speech Danny deVito made in that movie(I think OPM). Where he mentions the last buggy whip maker had thwe market cornered too. Until the automobile was widely adopted. Common sense here. We're way ahead of the curve, and it will no doubt still be a choppy ride, but you can't change evolution.

To: Brooks Jackson who wrote (10307)	9/19/1999 9:02:00 AM
From: p friend	Read Replies (4) \| Respond to of 20297

Of course, if Checkfree prints a check, you keep the float until the check clears your bank. For electronic payments, I believe that they do not remove the money until the day you instructed them to do it. And, I believe the vendor receives the money the same day. Checkfree does not attempt to benefit from the float (or we should be able to find this on their income statement). However, the consumer could have kept some float if the payment had been made by paper check (theirs or Checkfree's) rather than electronically. Thus, Matt might have been acknowledging that consumers would lose this float, but he is saying they do not mind. Also, from the Washington Post article: "the bank often takes money from his account nearly a week before it arrives in the hands of his creditors." B of A (possibly not Nationsbank/Checkfree, could be California/Old B of A?) may take the money on the day you forward the payment request, I do not know. Notice the way the statement is written. Part of the float could be that vendors are not posting electronic payments to accounts on the day they are received. The float here is being seen as the time the bank removes $ from the consumer bank account to the time the vendor is crediting the $ in the consumer's vendor account. I have had that happen in the past where vendors treat electronic payments as exceptions and actually post them slower than checks!