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

To: Bob Kim who wrote (4889)	10/11/1999 6:16:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 10027

Bob, Okay, let's look at some numbers that may explain where we are: 1. First quarter earnings were 34 cents. We know that this 3Q was about the same as 1Q volume-wise. Therefore, what new costs (or lost revenues) exist? 2. As for the 3Q, KP just announced that mid-point pricing at the opening bell (which didn't exist in 1Q) meant $10MM in lost revenues. That is about 10 cents/share. That brings the 1Q number down to 24 cents. 3. What other new cost is there? Advertising. Call the advertising expenditure about $5MM to $7MM in the 3Q (there most be front-end loading of this expense). That is 5 to 7 cents a share. That brings the 1Q number down to 17 to 19 cents. 4. 17 to 19 cents is the estimate for 3Q per the company. If these numbers hold true (a big if), at least there may not be some other unknown bug-a-boo out there. Gary Korn