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

To: AriKirA who wrote (399)	5/22/2000 5:17:00 PM
From: keith massey	Read Replies (1) \| Respond to of 960

Etrade, Schwab and other competition. Global trading generated 100's of Billions in fees last year. Just the Asian stock exchanges that SEG has initial targeted will generate $20-30 Billion in fees this year. Do I think CPT/SEG will be the dominant player in the global trading online arena? Not by any stretch. Do I think that CPT/SEG has the products, connections and management team that will allow them to get a small penetration of the global trading market? Absolutely! ETrade recently put out news that they were going into the Global Online Trading business in a more agressive way. Taking a closer look at the ETrade news: ETrade's cross-border trading network, to which the company hopes eventually* to link the 20 top international stock exchanges, handles all parts of the trade, including foreign exchange transactions, electronically, without ever having a human hand touch the process, Ms. Balint said. UBS Warburg will provide the live foreign exchange pricing and execution of foreign exchange transactions. So what I read is that E*Trade HOPES to EVENTUALLY link to 20 stock exchanges and will have foreign exchange fees for each trade. CPT already has links to 10 exchanges and can quickly use their model to link to their targeted 50+ stock exchanges. The brokerage firms still have all the red tape to deal with so on paper Etrade?s and other firms ideas sound great but actually creating physical links to all the exchanges is a lot more tricky. According to SEG/CPT?s marketing the majority of investors only want to trade on a few (2-3) foreign exchanges so the sign-up process should not be complicated. One major problem with Etrade?s and other brokerage firms ?one account? approach is that you are charged foreign exchange fees each time you make a trade. When you have an account in U.S dollars and want to trade a stock in Hong Kong you are charged a fee for converting your money into Hong Kong dollars to buy the stock and then charged again when you sell the stock and it is settled back in your account to U.S dollars. The last time I traded in Australia through TD they charged me $102 in foreign exchange fees for the trade. If you open an account with a brokerage firm through SEG your money stays in that brokerage firm in their foreign currency and you don?t get charged any foreign exchange fees for each transaction. This is the absolute cheapest way to trade. Since most individual only want to trade on a few exchanges the benefits should outweigh the hassle for a good number of investors. Of course there are going to be investors that don?t mind paying more for a ?one stop? account but there are also investors that want the lowest cost commission possible. Now to be realistic, in the future we are definitely going to see serious competition from both brokerage firms and other firms that will attempt to use a portal type model. However along with a trading account SEG customers will also be able to participate in foreign IPO?s and will have access to non-public analyst reports from around the globe supplied by their partner brokerage firms. These are services that will very likely not be available from other brokerage firms and should ensure SEG market penetration. In addition, from SEG?s website: Products/Services: Through our partner brokers, SEG will offer access to international equities, real-time financial news, live quotes, analyst reports and international IPOs. Additionally SEG will generate additional revenue by selling marketing space, accumulating consumer information from data-mining and licensing business strategies to investors/entrepreneurs wishing to establish their own business in native countries and business referral services. Services will eventually include access to options, bonds, and foreign exchange markets. By the way I look at it, even if CPT/SEG is only able to achieve a 0.1% (1/1000) penetration of the global online trading market they have the potential to generate 10?s of millions in commission revenue a year. Since their model is very low cost they also have the potential to have some very serious earning from that revenue. With the number of services they have planned, their current partners and the team they have working on this I think it is safe to say that they will get their penetration of the market. Last year Etrade generated over $200 Million Cdn in FOREIGN fees without their current foreign trading plans and presently has a market cap. of over $9 Billion Cdn. To see some serious appreciation in CTP stock price they don't need to be number 1 or even number 10, they just need to secure a small chunk of the market. Best Regards KEITH