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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: ciVic who wrote (26138)	11/10/1999 5:06:00 PM
From: amadeus	Respond to of 108040

made 8 pts. easy on the way up, just wish I hadn't tried to catch it on the way down... missed twice. should remember my own comments to jim the other day about that very risk... and take my own advice. I do think that the weakness in NXCD after such a powerful run was at the very least, a warning sign to me personally about the market at the moment but still had a great day its been easy to get overconfident lately, with nearly everything off and running at the drop of a hat.

To: ciVic who wrote (26138)	11/11/1999 8:14:00 AM
From: Kimberly Lee	Read Replies (3) \| Respond to of 108040

Briefing doesn't like it: 12:03 ET ****** NextCard Inc. (NXCD) 52 +20 3/8: It doesn't take much to get the slumping stock of a want to be Internet company going again especially if you attract the eye of the fast crowd. And it certainly helps to announce a deal that involves Amazon.com (AMZN 73 5/16 +2 1/2), although it recent sessions, this online retailer has run into its share of selling as investors have been less than enthused about the pile of money the company seems comfortable spending (and losing) without much regard for its bottom line. Well this morning the shares of NextCard, a Web-based credit card issuer, are up more than 64% as NXCD has inked a five-year deal with AMZN that will create a co-branded credit card geared at Amazon's 13 million customer base. In addition, NextCard will give AMZN a warrant to acquire up to 4.4 million shares of NextCard common stock. This latter arrangement is really the focal point of the deal and the reason for the jump in the stock as the company has so far struggled to make its Internet strategy work. Given that NextCard has no real source of revenue other than its credit card interest and transaction fees, it has tried to develop its Internet strategy around the instant sign-up feature of its service on the Internet. So far, it has had only limited success as while individuals may be willing to fill-out a credit card application, it doesn't mean that it will be approved. Without a quick ramp-up in credit card users from Amazon.com's 13 million customer base, NextCard could still be fighting an uphill battle as more established credit card companies with more diversified sources of revenue begin to farm the Internet. If this deal with Amazon.com does not lead to quick sign-ups and operating results, maybe NextCard's next strategy should be to get AMZN to bite on the warrant option since the diverse online retailer has so far demonstrated little discipline for spending shareholder money. Not that this matters to momentum stock players. - RN