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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?

To: Crazy Canuck who wrote (27)	3/15/2000 4:12:00 PM
From: keith massey	Respond to of 960

An individual on the Stockhouse thread had several questions/concerns that I have attempted to address. As far as the utilization of information from these brokerage houses, most houses lag behind the street. This may be true, but that sure doesn?t mean that people are not willing to pay large sums of money for these ?delayed? report. We have all seen how a publicly released buy/sell recommendation from a major brokerage firm can effect a stock. Customers of these brokerage firms (and now customers of SEG) receive these buy/sell recommendations / research reports before the public and can act of the information, and that is worth money even if some of the information in the reports might be delayed. The solicitation of funds for the purpose of investment and the dissemination of news for the purposes of investment by anyone other than a registered securities dealer is I think a problem in your system. At least in North America. Basing your investments on loopholes is a consideration, which will be determined by each investor. If you had read all the SEG reports or talked with the company you would find that they are not using ?loopholes? and have already addressed the issue of solicitation of funds in detail. There are no regulator problems in any country with this model. SEG is a portal and hence is not soliciting any funds from any investor. They are providing a portal to a registered securities dealer who by law can solicit funds from customers. Since SEG only directs customers to the right registered broker and doesn?t physically deal with the customer?s accounts, they don?t solicit any funds. Since they are not soliciting funds they can provide as much realtime data, new reports, analysis reports, etc. that they want. The most detrimental factor is that for every trade you make with SEG you will in effect be making two trades. One with SEG and one with whatever broker is represented and in our case in whatever language translated back to English. Two brokerage transactions will lead to twice the problems. You are not making two trades, you are making one trade. SEG?s software will interface directly with the broker?s present online software trading system (if they are online) or directly with the broker?s terminal (if they are offline). This means it is one big seamless link for the trade and there are not two trades being done. Of course this type of trading software is not easy or cheap to develop but SEG has got a great edge over the competition. CPT has had a business relationship with Datamat since 1995. Datamat, established in 1969, is one of the largest proprietary software developers and computer hardware service maintenance providers in Thailand and specializes in major system installations and software developments in the banking and securities market. They are responsible for over 50% of the computer trading systems in Thailand and the Philippines. Datamat?s software is also being used intensively by the Bank of East Asia, which is the top bank in Hong Kong in terms of capital, assets, and profitability. In other words, Datamat knows what they are doing when it comes to trading and banking software. Who sits on the board of CPT/SEG Suskanya Prachuabmoh ? Chairperson of Datamat Prithep Sosothikul ? Former President of Datamat With these two individuals at the helm and Datamat?s experience I don?t think software problems will be a major issue. In addition, I understand from talking with the company that they have also contracted out software development to another experience online trading software firm. CPT has been doing stress and beta test on the software for a while now and I am sure they will work out any bugs before it goes live. You are correct that the language issue is an important one. I had the pleasure of talking with Mr. Chu directly about this issue and was informed that they were addressing that problem right from the start. For example, for the Hong Kong launch they already have 2 languages in 3 different formats built right into the trading software. English being the base and simplified and traditional Chinese in place. As they expand to each market they will allow traders to interact in their native language. This might be another edge over their competition since I doubt Schwab, Etrade, etc., will offer its online foreign trading system in North America in numerous different languages for several years, if they do at all. Every trade will incur a trade recorded at SEG and one at the Exchange the trade is directed to allowing for twice the human and or computer glitch type error I guess I answered this one in my last response. It is the SEG?s partner brokers that deal with the exchange and all the trading records. SEG is just a portal for the information. Since these brokerage house are the leading house in their respective countries it is safe to say that they know how to handle paper work. SEG will portal any information about orders and account balances from the partner broker right back to the customer. With the team and companies they have working on the software I don?t think you can assume there will be errors. I still maintain SEG's service will be used 95% by the local and the away from home residents. I agree the global demand increase but as is the case with the very jittery nature of investors they will eventually migrate to the more trusted names in the business. I have to disagree with you on this point. SEG to date has only partnered with the top 5 brokers in ever country. For example, ICEA and Tia Fook, SEG partners in Hong Kong are the powerhouses on that exchange. Taking the Hong Kong example - If I was an oversea immigrant from Hong Kong or an expatriate from Hong Kong who would I trade with? These individuals know ICEA and Tia Fook, they know they can control the exchange and they know they have a great reputation. They probably don?t know much about Charles Schwab or Etrade. Who would they trade with? I do however agree that travelers and locals will also provide a large customer base. Since SEG will allow offline brokers to become online brokers since their software will interface directly with the broker?s terminal and locals that want online trading with their offline broker that are SEG partners will have to go through SEG. I don't think we can assume that SEG will secure the best brokers from all areas in the world. Most brokers that are not of a second or third level are already associated with higher powers especially in Europe and North America SEG does not take away business from these brokerage houses, they add business for a fee. So far the have signed leading brokerage houses (at least top 5) in more than 8 countries. These are exclusive long term contracts so we don't have to worry about another portal or big boy coming in and taking them away. You are probably correct that Europe and North America will be a lot trickier to set up base but after they establish themselves in Asia and prove there software I don?t think they will have any troubles signing on some good size broker firm Best Regards KEITH

To: Crazy Canuck who wrote (27)	3/15/2000 5:40:00 PM
From: gg cox	Read Replies (1) \| Respond to of 960

CC, I just looked back in my records for the one overseas buy I made on August 19 1996 through TD Greenline now Waterhouse.The order was for 2000 shares of an Australian company at .69 cents per share..Well I got my eyes opened wide with that buy.. .69397 Gross $1387.94 Commission $215.00 O.S.C. Fee .50 Net Amount $1603.44 That's right COMMISSION of $215.00 well it was a learning experience anyway<<<ggg>>>this portal idea of CPT would certainly lower these fees.. if one had an overseas account you could go directly to the brokerage of choice through the portal and do the trade and pay the going rate plus some for the portal.Sounds better and more convenient than getting clipped by TD.