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Strategies & Market Trends : Working All Day, But Trading Behind the Bosses Back Thread -- Ignore unavailable to you. Want to Upgrade?

To: Mark[ox5] who wrote (234)	1/28/1999 10:45:00 PM
From: Cymeed	Read Replies (1) \| Respond to of 779

<<< #1 : can you explain how CKFR could beat a consortium with such deep pockets and technological know-how? (MFST, CITIBANK?) >>> Transpoint is just late in the game and their management is just not as familiar as CKFR in this area. They started with a wrong strategy (a "closed" system which CKFR CEO said they will have to change in the future and surely Transpoint did change recently.) Now they seem to be learning everything from CKFR, from the industry standards which MSFT, Intuit, Integrien, and CKFR set together, to the terms such as "round trip" - referring to bills sent and bills paid. I am not really veruy familiar with the details of "barrier entry" and competition advantages that CKFR possess. One good source would be their own net site at checkfree.com, under the title of "Hypes and Reality", which specifically compares CKFR with Transpoint. Coincidently, the stock runup just started before they updated their site and put a lot of information there which sounded convincing...at the same time, they are signing up partners quickly while Transpoint's bill pay is still under "piloting with employees." <<< #2: How different are the 2 technologies... and could those billers use both technolgies or is it like VHS/BETA where only 1 will be picked? >>> I think they use the same standard, called OFX - Open Financial Exchange System or something like that. The barrier of entry or competition is, imo, who is faster in getting to the market and who reaches the crtical mass first and become most efficient. CKFR CEO has predicted that Transpoint will be here to stay because of their deep pockets. And the business is big enough for two or even more players over long term. Credit card business was owned by Master and Visa, plus more smaller ones. In some's view point, Transpoint just made another mistake recently, again, to add Citibank as their partner. Because Bill Pay requires the corporation of banks, when they have citibank as a partner, other banks don't want to work with them because they don't want the highly confidential transaction information to be exposed to a competitor of theirs like Citibank. Currently, CKFR has 200+ banks working with them while transpoint only has Citibank and one or two others. Very funny, Microsoft's Money software ues CKFR's PC banking part, same as Intuit's Quicken (Intuit BTW, owns 20% of CKFR). Transport started the game with an easy part - bill presentment, they don't even have bill payment(PC banking) yet. CKFR, on the other hand, has the ability to "pay anyone." And the infrastructure CKFR put together certainly is another advantage for them. This is as far as I know. Some of those may even be my misunderstanding. BennyBaga and Tlint are the experts on the CKFR thread. They are a couple of institutional shoreholders on that thread as well. Bob Gintel is one of them. Large float has been a concern. But all agreed on the CKFR thread that recent runup was driven by institutional owners. Average trades per transaction were > 10,000 in the last few days. Thsi also be institutional investors looking for Internet stocks but do not like the valuation of Yahoo and Amazon. Like you mentioned early, a second wave of the net stock runup. Thanks for your suggestions. I am not sure CKFR is another AOL, etc. I normally put a lot of salt wwwhen somebody say the "next." But its fundamentals sounds convincing at this moment. Would appreciate if you can update your thoughts on this one. By the way, bought some IDTC after seeing your posts a couple of days ago. But unfortunately, I bought it at the 3rd gap - the exhaustion gap. So I am experiencing some loss now. Pray the market will continue up so IDTC will be fine lol