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

To: Sir Francis Drake who wrote (7038)	1/27/2000 4:41:00 AM
From: KM	Read Replies (1) \| Respond to of 10027

Heard a couple of interesting things: Coverage on NITE being "initiated" by Asensio. Oops. Watch out. People talking to Milberg Weiss about a class action suit. Oops.

To: Sir Francis Drake who wrote (7038)	1/27/2000 10:56:00 AM
From: fiberman	Read Replies (2) \| Respond to of 10027

I am just asking for your "OPINION" here, please. Basically like all others on this thread I am disappointed, but I am still "LONG". My avg. cost is 40. I DO want to reduce my cost. Do you think it has stablized at $32 area, or do you think we are going lower. Will the FED meeting have a major impact here, or is it already priced in. I am already badly cut and am bleeding becuase of my poor timing, as usual, and do not want to lose even more. I do understand that I am asking for your "OPINION" only. No strings attached. Thanks in advance!! All other "NITE" brothers, please feel free to comment. Thanks!!!!!!!!!!!!!!! This is one of the best threads on SI.

To: Sir Francis Drake who wrote (7038)	1/28/2000 9:57:00 AM
From: blankmind	Respond to of 10027

good morning morgan i hope we can continue our discussion a while longer before you stop posting, and i assure you many of us enjoy your posts because of the reasoning and facts you intertwine. the majority of NITE's business, the vast majority, is retail trade. True, there is focus on growing institutional business, which is far more profitable. But that does not mean that the institutional business ought to come at the EXPENSE of retail growth, but rather in ADDITION to it. nite may have two reasons for the lack of growth in the retail trade. first in handling the institional growth, they need the capital to handling the larger orders and second nite is the largest user of ecn's. with the increased capture of institutional trade, they help to generate the greater amount of ecn trades, so the % may have to viewede differently. i am assuming that nite's traffic may be counted as online trading that nite generates. also it will depend on what stocks caused the oline growth in trading if nite should capture the same % as the growth and if the trading has been more maket orders or limit orders. you have complained about nite's lumping with the olb's, but clearly this is an analyst problem, not a nite problem. ú Knight should be viewed as an online trading infrastructure play. Regardless of who wins or loses in the evolving world of online trading, whether it is traditional broker/dealers with an online strategy or online brokers, Knight Trimark benefits from the surge in trading volume generated. (from gary's paine report) taking your car example, yes some manufactures have focused on capturing a larger amount of the suv or truck sales at the expense of the lower margin compact cars. and nite in this case not only makes more from the institutional trade, but they also know it as a steady income. back to our discussion of growth of online trading: NITE actually benefits from competition in online brokerage... The entry of large brick and mortar brokers, such as Merrill Lynch, into online trading is a positive for NITE. As investors switch to the online medium, studies have shown a change in trading behavior implying anywhere from a 25% to a 200% increase in trading activity. As the largest execution house for online trades, NITE should capture a significant amount of this growing pie. In fact, Merrill Lynch is its fifth largest customer. and Growth in online trading. Online brokerage accounts are expected to grow in excess of 35% per year over the next few years and Knight Trimark is the largest market maker to the online brokers. Online trades account for approximately 60-70% of NITE's trading volume. The pie is getting bigger. While not disclosed generally, some online brokerage firms have recently suggested that as much as 50% of new accounts are investors that have never traded before, likely a result of the massive marketing spending. In addition, households invested in the equity markets has grown to about 50% and should continue to grow. clearly online trading growth does not appear to be slowing and the new people getting online trade more than traditional investors.