The Stockprowler.com's pick this week is…
Wamex Holdings, Inc. (WAMX:OTC:BB)
Corporate Web site: wamx.com
Shares Outstanding: 106 million
Estimated Public Float: 29 million
Market Capitalization: $149.5 million
Closing Price Friday: $1.41
On July 4, 2000 a revolution in equities trading will begin… Wamex Holdings, Inc. (WAMX), an innovative development stage company, will launch a revolutionary web-based trading platform aimed at providing investors with a means to trade directly with each other, rendering the traditional broker-intermediary model obsolete. The Wamex Alternative Trading System (ATS) creates the ultimate efficient trading system for individual investors… Investors simply enter their order parameters into the ATS and they are matched with other investors. The ATS provides alternative pools of liquidity for its member investors allowing them to trade directly with each other. There are no intermediaries to take a fraction of the investor's capital, to add significant delays to the execution of the transaction, and to detract from market transparency. There are no executing broker dealers, sale of order flow, or proprietary trading against investor limit orders. Never before has a securities firm opened its limit order book to its clients. The Wamex system not only does this, but also displays its orders to the whole world.
Wamex Advantages:
24 Hour/7 Day a Week active trading and execution via Internet, fax or phone
The fastest trade execution at the lowest cost in the world
The ability to trade any registered security in the world without a broker
The ability to convert currencies and execute stock transactions simultaneously
Translation in 9 different languages
T+O Trades-In most cases instant settlement, confirmation and clearing with the guarantee of delivery and cash transfer
Easy-To-Use/Easy-To-Understand Interface
Direct interaction between small individual investors and institutions
Unparalleled order management systems that can be programmed to execute instructions without supervision VELOCITY(TM)
Communication ability between members via the WAMEX Message System
Up to date, real time investment information, charts, graphs and quotes
Move from direct ATS trading to order routing for traditional open market execution
Minimized standards for membership Easy-To-Join/Easy-to-Maintain
Wamex has several subsidiaries crucial to its core business… Wamex 3D will handle the technological aspects of the new ATS service, and Wamex, Inc will control the day-to-day operations of the new service. Both are scheduled to launch operations in July 2000. Instox, Inc is an inactive subsidiary, which will be merging with Niphix, Inc, which is also owned by Wamex Holdings, Inc. Niphix, Inc runs an alternative listing system (ALS). This online market allows companies to list directly online instead of going onto some of the more traditional exchanges to raise funds. Most companies on these exchanges are generally small and higher risk ventures that were unwilling or unable to get the necessary approval for listing on the traditional exchanges. The Niphix, Inc. was acquired in March 2000 in order to accelerate Wamex Holding's implementation of an ALS.
Wamex's launch on July 4, 2000 comes at a time when the Securities and Exchange Commision has called for better compliance on limit orders. In May, the SEC held a roundtable discussion that, for the first time, assembled a broad swath of the industry to consider limit order transparency. SEC Chairman Arthur Levitt used the occasion to signal that he expects a voluntary solution from the industry, and that the SEC will lose patience if it doesn't happen soon. Chairman Levitt made it clear that the traditional markets must do more to embrace competition and innovation, and to level the playing field between the individual investor and the market professional. Wamex is the only publicly traded company known to be developing a global "round the clock" Alternative Trading System which has the potential to be more powerful than any exchange or trading system now in operation. A preview of the Wamex revolution may be viewed here.
Wamex Holdings, Inc. has affiliated/partnered with companies such as Oracle (Nasdaq:ORCL), NYD2, 1 Web Pl., Netholdings, AboveTrade.com, and IBChannel.com to create a new alternative stock market. Russell Chimenti, NYD2 Chief Administrative Officer, recently stated, "NYD2's clientele includes, but is not limited to, American Express, Foster Wheeler, Lucent, McDonalds, ARAMACK, the Associated Press, Johnson and Johnson, and Warner Lambert. NYD2's creativity and technological prowess coupled with the Wamex ATS software platform and Oracle's engineering, will provide an unmatched trading experience and certainly, when deployed, provide shareholders with long term value." IBC's broad network of affiliations with public companies will enable Wamex to quickly facilitate trading in popular growth stocks. IBChannel.com is the premier business and finance portal providing investors with a one stop destination for business and financial information. Additionally, AboveTrade.com designs and operates web-based investment decision evaluation and support platforms. Their virtual analysts help members of the site make better investment decisions through stock-specific trade recommendations based on proprietary algorithm-based stock and market analyses. These same investors will now be able to enjoy the Alternative Trading System that Wamex will launch on July 4, 2000. This revolutionary trading system provides investors 24/7 access to trade all registered securities at low cost with anonymity across borders, in any major currency, in different languages, and with a link to trade all major exchanges. Recently, Wamex has been contacted by several international investment banking firms concerning the potential of co-listing on several small-cap stock exhanges including the Frankfurt, Athens, Luxemborg, and London Stock Exchanges.
Matthew Marcus, CEO of IBC, stated, "We are excited about partnering with Wamex to bring individual and institutional investors the latest in Wamex quotes, news, resources, and services. We have positioned IBChannel.com to bring investors to the forefront of trading technology. Wamex has convinced us that it will carve out a niche next to Island, Instinet, and other trading systems which enhance the transparency of global markets. Henceforth, we expect Wamex to eclipse the success of another one of our partners, Market XT, which was bought out by Tradescape.com with backing and support from Softbank, Morgan Stanley Dean Witter, Salomon Smith Barney, Bernard L. Madoff Investment Securities and Warburg Pincus Ventures just months after launch."
Wamex recently announced that it has acquired $6.9 million in funding from a private Investment Group. Mitchell Cushing, Chairman and Chief Executive Officer stated, "We are proud to announce the closing of $6.9 million in funding from an Investment Group. It is our contention that this funding will provide Wamex with the working capital to achieve immediate key objectives including the deployment of the ATS. It will also allow for the completion of mid-term strategies and afford the Company the opportunity to initiate the 2nd phase of development for NIPHIX." "NIPHIX, a subsidiary of Wamex Holdings, Inc. will operate with increased listing and trading capabilities. The NIPHIX ALS (Alternative Listing System) will enable investors to participate in public offerings from both domestic and international companies. The combined ATS and ALS technologies will create a 'total platform' and global trading arena".
On May 10, 2000, Wamex Holdings, Inc. procured office space at 14 Wall Street for the operation and administration of the Alternative Trading System (ATS). This elite location will likely assist in the effort to bring greater exposure to Wamex as well as providing a determinable reference point to the NYSE… WAMX closed up Friday at 1 13/32 on 616,400 shares traded. There is currently no direct competition offering the same products and services as WAMX. WAMX has the potential to create a revolution for online investors… a whole new alternative marketplace.
Good trading… Stockprowler |
