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

To: Robert Gintel who wrote (3355)	4/19/1998 8:57:00 AM
From: Brooks Jackson	Read Replies (2) \| Respond to of 8545

Robert, Benny -- Yes, I should have remembered the long-term contract with Nations. And I agree with Benny that CKFR in all probability will still process billpay payments more efficiently than BOA/Nations could ever hope to do, because of the inherent economies of scale in this business. I'm guessing odd are about 95% that BOA/Nations will stick with CKFR for everything but California, and maybe even hire CKFR for all their business. I'd put the odds of their becoming a competitor at about 5%, and only because, as Benny points out, banks don't always do the smart thing. I only bring this up because CKFR's prospects look so good to me that I'm constantly trying to figure out what "bear scenario" I might be missing. And speaking of Chase, when do they roll out their billpay product? I should think we might see a big advertising campaign, putting pressure on other banks to meet the competition. That should provide a nice lift for CKFR when it happens.

To: Robert Gintel who wrote (3355)	4/20/1998 3:58:00 PM
From: Benny Baga	Read Replies (2) \| Respond to of 8545

Mr. Gintel, If you look in the CheckFree 1997 annual report, it notes that CheckFree and Nations signed a 2 year agreement for bill pay in the first quarter of the fiscal year (in other words between July96 - Sept96). So in other words, Nations/BoA will have to make a decision to go it alone or go with CheckFree (by Sept 98). Since I doubt they can be up and running that quick, CheckFree has some leverage to push for a longer term contract. Nations/Boa merger won't even be final until December. It looks like CheckFree has a good position when it comes to NationsBank. Benny(Did you see the Block trade of 200,000 shares?)