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

To: AugustWest who wrote (7077)	8/22/1998 1:11:00 AM
From: Capt	Respond to of 8545

Hey, maybe you'll get lucky... can you say Havana. WARNING, down here the Captains have you sign the log in pencil...

To: AugustWest who wrote (7077)	8/22/1998 1:27:00 AM
From: chirodoc	Read Replies (2) \| Respond to of 8545

ABN Amro moves CKFR to Priority Buy Listnewtockfr (M/Atlanta, GA) Aug 21 1998 9:58AM EDT We are adding CheckFree to our Priority List. The stock is down more than 50% since the company revised downward its EPS guidance for FY 99. After speaking to several major bank clients, we are comfortable with our subscriber projections for FY 2000, and believe our estimates could prove conservative. Further, CKFR is trading at only 11x our Calendar 1999 EBITDA estimate of $1.00 per share. Highlights: * We are adding CheckFree to the Priority List. CheckFree is the dominant market share leader within electronic home bill payment services with an estimated 75% market share. We view the slowdown in subscriber growth as temporary and believe the market has significantly over reacted. * Since reporting earnings last week and providing revised guidance for FY 99 of $0.12 - $0.16, down from $0.32, the stock has corrected more than 50%. The earnings revision was due to projections of slower subscriber growth as banks transition to Internet based home banking solutions from PC-based. However, we believe that the long term business story and growth strategy remains intact for CKFR. After speaking to several large banks currently offering Internet banking, we believe that our subscriber projections for FY 2000 could prove conservative. We are maintaining our estimates for FY 99 and FY 2000 of $0.14 and $0.55, respectively. We have adjusted our FY 99 earnings by shifting $0.02 from our 2Q estimate to the second half of the year to reflect both cost efficiency measures and modest subscriber acceleration in the 2nd half. * We are reiterating our BUY rating and price target of $30 based upon 55x our FY 2000 estimate of $0.55.