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

To: gbh who wrote (5502)	11/3/1999 8:08:00 AM
From: Gary Korn	Read Replies (5) \| Respond to of 10027

Conversation with NITE IR (by a person on the YHOO board. This is a nice post: Investor relation comments by: ezzzmoney 11/3/1999 3:21 am EST Msg: 104655 of 104663 I had a long conversation with investor relations today. A lot of good information was received. The following questions were asked: Question: How come there was such a significant shortfall last quarter and why did you wait to pre-announce at the last minute? NITE: We saw the Analyst estimates were to optimistic during our 2nd qtr conference call. The Analyst estimate expectations were high because we kept beating their estimates handily. Nite does not give much guidance but did tell the Analyst to only expect 5-10% growth in earnings in the 3rd qtr year over year. In the 3rd qtr Analyst started to revise numbers down after learning from OLB?s that volume had slowed. We saw the analyst revisions were not revised low enough. Nite worked through the weekend to accelerate their estimates and to release their earnings early, to prevent further speculation and deterioration of the stock price. Question: Why do you choose not to guide Analyst? How do shareholders know how Nite is doing? Will shareholders get blindsided by another last minute pre-announcement? NITE: We have instructed the Analyst to run volume histories to forecast future volume. The summer months have a history of slower volumes. It is also important to note that the markets have to be broke down into segments. You have big cap, small cap ect.., Nasdaq, NYSE &OTCB Nite makes more money from the retail investors. You can use the OTCB volume as a barometer of the retail activity. As for not giving guidence, Nite may have a great October & November and if we guide Analyst up, what happens if December slows down? Who knows what Y2K effects will have on the market in December? The primary advice was to keep your eye on the volume, especially the OTCB. Question: What comments can you make in regards to the insider selling? NITE: The original broker-investors are not insiders. They made an investment with the eventual intention of selling their stock, and using the profits to best serve they?re own shareholders. It has been made very clear the sales were used to pay for significant increases in their advertising. These investors do not have to consult us nor do we keep track of what they are doing with their shares. The advertising they are spending their money on however, is a direct benefit to Nite at no cost to us. Question: Did or do these large investors have or receive inside information that may have prompted them to sell? NITE: Absolutely not. They have NO other information other than what is made public. The sales were coincidental to the shortfall of 3rd qtr earnings. Question: What is the purpose of Nite advertising? NITE: Right now in Germany, an investor has a screen where they can choose a market maker. KP decided, because of the global expansion to start ?branding? their services. For the relatively small amount of money, we will be ready, if this practice spreads. Question: Has the sale of stock from the brokers effected your relation or business with any of them? NITE: Not in anyway. Market share & volume has not changed. Question: How will the OPTIMARK deal effect revenue & earnings? (I will sum up the effects of this deal simply; this was a long conversation) Optimark allows institutions to place ?what if? orders. In other words, a institution can place complex orders that say ?if the price of the stock goes up, I want to buy or sell x shares at x price? or ?if the price of the stock goes down I want to buy or sell x shares at x price?. There are 3 big benefits in this deal for NITE: 1) Nite can take smaller retail orders and bundle them in to 1 large sale/buy for an institution. They could make additional spread during this process. 2) What they will be doing in any event is building market share. They will trade orders that they otherwise would not have had the opportunity to trade. 3) Nite will be paid by receiving Optimark stock, eventually being the largest shareholder. 4) Nite has nothing to lose in this deal. Question: I heard that there are problems with Optimark?s software. NITE: There is no problem with their software. The software is excellent. The problem is that they have no liquidity in the system. Because they don?t have any liquidity, a institution does not want to take the time to enter these complex orders. The chance of the orders getting filled are not very good. Nite will provide the liquidity, it will now be worth the time for the institutions to use the Optimark system. It was made very clear that Optimark chased Nite. They needed Nite. This sounds like a ?no-lose? deal for Nite. Question: KP stated an Options acquisition would take place in the 4th qtr. Is there any change in plans? NITE: No. There will be an announcement before the end of the quarter. In other general conversation, I was told to remember that the insiders own millions of shares themselves. They have every incentive and will continue to concentrate on running the business in the best way possible. They cannot and do not concern themselves with short term but rather look to the long-term interest of the shareholders. They realize that rumors get started and things get blown out of proportion at times but it is in the long-term interest of the shareholders to focus on growing the Company. They are very proud of the growth rate in both revenue and earnings that they have achieved. I must say, after talking to them, I feel more comfortable than ever being a long-term shareholder. They have been working hard on P.R. from the CNBC piece to articles. I get the sense that they are very comfortable with the progress that is being made and their future.

To: gbh who wrote (5502)	11/3/1999 6:48:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 10027

I've heard the NYSE wants to IPO next year. I wasn't aware the NASD was also considering. Are you aware of the timeframe? Wednesday November 3, 6:30 pm Eastern Time Nasdaq forges ahead with private placement plan NEW YORK, Nov 3 (Reuters) - The National Association of Securities Dealers Automated Quotation system (Nasdaq), the nation's largest electronic stock market, is moving forward with plans to hold a private placement of its stock, according to Nasdaq President Alfred Berkeley III. The private placement would be open to members of the National Association of Securities Dealers, the self-regulated owner and operator of the Nasdaq, Berkeley said, and may also be opened to some of Nasdaq's larger issuers. Nasdaq is home to such prized technology stocks as Microsoft Corp. (NasdaqNM:MSFT - news) and Intel Corp.(NasdaqNM:INTC - news) and trades a large number of the nation's technology stocks. A private placement would transform the Nasdaq by drawing in its larger members, who account for most of Nasdaq's revenues. Fresh funding could help it repel fierce competition from less-regulated, upstart trading systems. Berkeley said the private placement is not a precursor to an initial public offering, though Nasdaq is known to have considered such a move. ``Right now there are no plans to go public,' Berkeley said. He declined to estimate the amount of shares or expected proceeds of the proposed private offering. ``It will be up to the investment bankers and what they report to the board,' he said on Wednesday during a speech at the New York Society of Securities Analysts. Nasdaq's board, which would have to approve the private placement, is expected to discuss the issue at a meeting in December.