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

To: Glenn D. Rudolph who wrote (4866)	10/11/1999 4:17:00 PM
From: Herschel Rubin	Read Replies (3) \| Respond to of 10027

Glenn, I think Gary meant to say "earnings growth" when you made your comment about "Listen to the words carefully" KP is calling for revenue growth of about 30 percent going forward. If the p.e. were the same, 30, that would support a stock price of 34. Revenue growth does not neccesarily translate into earnings growth. Listen to the words carefully. ____________________________________________________________ From the NITE press release: "We are highly confident that Knight will continue to experience year-over-year increases in volumes and earnings in excess of 30 percent as it diversifies its revenue stream and expands its market share. _________________________________________________________ If I listen to the words carefully (although we can never be sure anymore!), I hear: 1. EPS growth in EXCESS OF 30% 2. DIVERSIFICATION of revenue (they are now painfully aware of their reliance on OLB trading whims and seek to correct it). 3. Market share will be EXPANDING I'm as disappointed as anyone else about KP's newfound credibility, but then again, he, too might have been banking on a good September (as we were) when he gave his "37 cents is a few cents too aggressive" guidance in early September. I would have expected that he would have warned earlier than this. Certainly Knight knew the numbers sooner than this. Pasternak is going to have to deliver a hard-hitting conf call presentation and then follow through with solid performance to regain his former credibility with analysts.