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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (9303)	1/22/1999 12:17:00 PM
From: CRay33	Read Replies (1) \| Respond to of 90042

SWS: It looks like Dick Bove at Raymond James has recommended a good company - Southwest Securities. They own "mydiscountbroker.com" along with other regional finance-related businesses in Texas. Mr. Bove's 12-month target is $44. Quietly, SWS has rolled out a new trading system and built up an internet-based brokerage which is running 100,000 trades per day - 3X the volume of EGRP or AMTD. The value of their 1.7 million shares in NITE corrects the stock price downward approximately $7/share to around $23. At this level their P/E is closer to 10 (they actually have earnings) plus their P/S is 1 and they have no long term debt. Their relationship with NITE interests me. Given... 1. NITE's near monopoly position as the internet stock market maker, 2. The larger positions owned by other larger broker/dealer/owners of NITE such as EGRP, AMTD, MWD (Waterhouse), TD.TO..., 3. NITE's average daily volume of 215K trades/day in their Q4, and, 4. SWS stated rate of 100K trades/day... ... it seems that the SWS business is accounting for quite a large portion of NITE's daily trading volume (50% or more?). I would think this is a good thing for SWS and its investment potential. Not to mention the brokers charge a commission in both bull and bear markets. There are many other facts/figures which are also compelling but are too numerous to mention here. But suffice it to say, I've taken a nice position and I invite the perspective of others. Any comments?