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

To: blankmind who wrote (6986)	1/26/2000 10:25:00 AM
From: gbh	Read Replies (3) \| Respond to of 10027

Here is the Bloomberg article. Most of the reasoning seems to fly in the face of what other analysts are saying. Knight/Trimark Falls After Bear Stearns `Unattractive' Rating Jersey City, New Jersey, Jan. 26 (Bloomberg) -- Knight/Trimark Group Inc. stock fell as much as 8 percent after Bear Stearns Cos. rated the stock ``unattractive' because of increased competition and slowing market share gains. The Bear Stearns analyst, Amy Butte, was Merrill Lynch & Co.'s analyst on Knight/Trimark in mid-1998 when Merrill managed the company's initial stock sale. In her report today, entitled ``A Dimming Light,' Butte said Knight/Trimark, the biggest Nasdaq market maker, can't record the kind of market share gains as in the past four years because of heightened competition. She placed a 12-month ``price objective' of less than $20 on the stock. Knight/Trimark fell 2 1/4 to 31 7/16 in early trading. Earlier it fell as low as 30 15/16. ``We believe that the company's earnings growth could slow materially over the next several years due to increased competition from ECNs, Instinet's entrance into the retail market and growth from traditional full-service competitors,' Butte wrote. Merrill, for example, has boosted by 20 percent the number of stocks its market maker business handles, she said. Electronic communications networks, or ECNs, like Reuters Group Plc's Instinet now execute one-third of Nasdaq transactions, automatically and anonymously. Instinet has said it will start an online brokerage in April; Knight/Trimark gets about half its business from online brokerages.