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To: stan_hughes who wrote (186420)	8/7/2002 3:05:54 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 436258

Stan, Yeah, basically the buyside pays the people they like, for a variety of reasons. Boutiques could pop up again. I have seen several cycles of boutiques in the business. On May Day, they pretty much all died. Their business model, getting paid for research by giving up Goldman or Salomon on the floor and splitting the commissions, was no longer viable. Then street research sucked for a few years again while energy came on strong, which allowed boutiques like Rauscher, Pierce to flourish. Then precious metals got hot and a few mining boutiques sold their wares. Junk bonds turned Drexel into a national boutique from a small regional. Then technology brought on several tech boutiques ala Hambrecht and Quist, Robertson Stephens and many others. The Emerging Markets and Biotechs sprouted a few, too. Most are gone or swallowed up now. So, we'll see what gets hot to nurture the next round of boutique research. And, we'll see if they can resist the Investment Banking business, which has always been their downfall.