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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: zuma_rk who wrote (2071)	1/29/1999 7:10:00 AM
From: zuma_rk	Read Replies (2) \| Respond to of 20297

Regarding the "Gorilla" analogy. I'm surprised that no one has compared CF to ADP as yet... I recently began looking at ADP after re-reading Lynch's "One Up on Wall Street" a few weeks back, and only WISH I bought the stock back in '92, the first time I read his book (just look at a 15-year chart for AUD to see what I'm talking about)... Even though ADP is a much more mature, established company, look at the pain it would cause for a company to switch payroll processors, to say, Paychex (which has done just fine as well, IMO). ADP (and Paychex) are the ONLY games in town if you want to outsource your payroll processing and direct deposit. As Harry pointed out, this is the same advantage CF will enjoy. CKFR has achieved three mission-critical objectives, IMO: 1) they have ALREADY dropped the per-unit processing cost to a point so low as to raise the barriers-to-entry enormously, and a 15-year old can clearly understand the benefits of EBBP in under 10 minutes. 2) Pete & Co. enjoys good, relationships with the banks and, more importantly, the billers, who will drive this process. Why should a biller, who already may have relationships with technology providers such as Integrion, Bell & Howell, and most notably, Oracle (who maintains the lion's share of the customer databases), switch to anyone else... 3) at the expense of short-term performance, CF has stepped up and made the critical investments to ensure scalable growth to handle a potentially explosive market -- while still maintaining a positive cash flow! This ain't an easy thing to do, by the way... Anyway, just my early morning opinions... RK BTW -- I'm not advocating running out and buying ADP, just using it for comparison purposes...