Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (1320)	1/25/1998 10:47:00 AM
From: chirodoc	Respond to of 8545

some comments on internet banking/netbank/citicorp..from barrons Another speculation: a bank down in Atlanta called Net.B@nk, which was underwritten this last July at 12. The stock is at 11 1/2 . There are six million shares. They basically take in all of their deposits over the Internet. They do no other business on the theory that their cost to attract deposits will be a lot lower than most banks'. They have capital of over $30 million. Total assets are now up to about $100 million. They've been in the red. Had a loss last year, will probably have a loss in the first quarter. In the second quarter, they should swing into the black and probably break even for the six months. It would make 20-30 cents for the year, all in the second six months. Perkins: If they have $30 million to earn interest on, and a low-cost business over the Internet, why no profits? MacAllaster: They just raised the $30 million and they've been paying people. Their hope is that by the end of '99, they'll have about $400 million of total assets, and earnings in the neighborhood of maybe $10-$12 million, or close to $1 a share. Neff: Art would be willing to pay 25 times earnings. Samberg: Speak for yourself. MacAllaster: It is an Internet stock. Of course, there is no barrier for anybody to get into the Internet business. In fact, Wells Fargo is large on the 'Net already. But Net.B@nk has managed to set one up. They have experienced banking officials running it. And they seem to be drawing a lot of deposits. Ziegler: Is it doing any lending? MacAllaster: They actually make mortgage loans. Rogers: I looked at this bank and thought about buying it. But I figured that any bank that wants to can do the Internet. Neff: Citicorp is pushing very hard. They've not only advanced the state of the art, but reduced the price to the consumer. Rogers: I agree with the theory one million percent. I just can't figure out why this one would work and others not. MacAllaster: Net.B@nk has a chance. And it's only trading at two times book. That is it.