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

To: blankmind who wrote (7100)	2/1/2000 11:30:00 AM
From: BWAC	Read Replies (1) \| Respond to of 10027

NEW YORK, Feb 1, 2000 /PRNewswire via COMTEX/ -- This release has been issued by Deutsche Banc Alex. Brown, a registered broker-dealer and member of National Association of Securities Dealers, CRD number 2525. Gary R. Craft, CFA, of Deutche Banc Alex. Brown today published a major new theme report, "On the Origin and Nature of the Electronic Financial Marketplace," which explains the shifts taking place toward electronic marketplaces and the resulting investment opportunities. The report includes: -- A definition of an electronic financial marketplace -- Where the biggest investment opportunities can be found -- How financial intermediaries likely will be affected -- Stock recommendations He estimates annual revenue for each of the four principal market segments to the electronic financial marketplace to be as follows: E Brokerage $5 billion E Banking $12 billion E Insurance $19 billion E Payments $9 billion Late last week, Craft initiated coverage on two securities in the sector: Knight Trimark (NITE - 31 5/8) with a BUY investment rating on the shares and CyberSource (CYBS - 35 1/8) with a MARKET PERFORM investment rating on the shares. Supporting these investment opinions, Craft draws from the nature of emerging electronic financial marketplaces, which he defines as: 1. A full supply of liquidity/capacity and unadulterated choice exists 2. Price improvement (more supply at existing prices or a better price) over physical/legacy world models 3. Timely and responsive information and transaction reporting 4. Tools and information that aid decisions as well as some back office filtering to assist decision-making 5. Regulatory compliance 6. Fair treatment 7. In cases, a share of the economics 8. Enforcement of rules of behavior by the sponsor In the equity markets, Craft believes an electronic marketplace already exists and its name is Knight Trimark. Knight Trimark currently captures over 20% in NASDAQ trading volume and is arguably the most important equity exchange outside of the NYSE and NASDAQ. He envisions significant changes ahead in Knight Trimark's industry and believes earnings acceleration and multiple expansion are possible for the company and its shares. Craft also believes a major market opportunity in Internet payments reporting and fraud detection favors the shares of CyberSource. Its payment gateway, fraud control and enhanced reporting services position it in what he believes is at least a $9 billion annual revenue market opportunity. His investment rating of MARKET PERFORM reflects hesitation about the Internet middle-market positioning of CyberSource, not about its management quality or technology platform. According to Craft, "The Internet economy could begin to reflect a third-world country -- an upper class and lower class with nothing in the middle. As such, CyberSource's model may need to migrate to either a single, low-cost solution for the top 50-100 Internet merchants, which may require either alignment with a merchant processor or actual purchase, or alternatively, the company could move toward a choice-driven model for the lower tier where CyberSource helps merchants secure merchant credit accounts and a processing relationship." For additional information, please contact Gary R. Craft at 415-617-3269. For additional information on Deutsche Banc Alex. Brown's equity research, please contact Chris Cortezi at 410-895-3418.