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Technology Stocks : NextCard, Inc. (NXCD) -- Ignore unavailable to you. Want to Upgrade?

To: KS who wrote (68)	9/28/1999 8:37:00 PM
From: puborectalis	Respond to of 192

Huge News on NXCD!!SILICON VALLEY STOCK REPORT 7/5/99 - NXCD Don't be surprised if you hear "What's on your NextCard," in the next few weeks. NextCard, Inc., an Internet-based credit card company, is launching a 10 million dollar national branding campaign asking people that very question. It is the company's first major move into non-online mainstream advertising. It is also a push to grow the company's list of more than 2 million applicants. According to the company, the "What's on your NextCard" campaign begins with a series of print advertisements featuring the personalized credit cards that made the company popular. It will then proceed to brand the card as the one you can get online and use everywhere. The move to mainstream media should be a positive move for the company. Unfortunately, consumers are going to need to be pursuaded to move from some of the large credit card issuers. I am not convinced that personalization of the card face will be the hook, especially among non-Internet savy consumers. Despite the intense competition in the credit card business, it should help the company eventually rebound from the net loss of 11 million dollars it posted in March. In the company's defense, interest income increased during the same period from 33 thousand dollars in 1998 to 660 thousand in 1999. The current hit to the profit margin is the intense amount of spending for advertising and promotion. While it may be a few more quarters before the company turns a profit, its prudent move into mainstream credit card competition may prove enough to keep revenues and the stock price charging ahead.