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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: William F. Wager, Jr. who wrote (287)	3/28/1999 2:00:00 PM
From: freeus	Read Replies (2) \| Respond to of 10027

Second Post: Rest of article from Investors Business Daily. Market makers perform the essential job of buying shares when retail or institutional customers want to sell and selling shares when customers want to buy. In 1998 over the counter stock traders such as K/T recorded annual revenue of $4.86 billion, says analyst Dean Eberling of Putnam, Lovel, etc. Here's how K/T 's operations works. Say a retail cutomer tells his online broker to buy 100 shares of XYZ stock at $100 apiece. The order is sent electronically to K/T. If it holds a matching sell order, a trade is made. If only 90 shares are for sale, a K/T trader fills the order by selling the remaining 10 shares out of the company's portfolio. He hopes XYZ prices fall, letting him buy them back at a lower cost later. K/T aims to hold positions less than a day. It tries to make money on volume, figuring the more orders handled the greater the opportunity. "This is a big numbers game" Pasternak said. Some of the company's original investors sold their stakes at a secondary offering in FEbruary, creating concern that K/T might see its order flow shrink. But Pasternak is confident they will continue to use the company because of its dominance. The company is broadening its customer base nonetheless. Already 50% of trades come from noninvestment brokerages, Pasternak says. K/T is trying to woo institutional traders, such as mutual funds, to send it orders. It plans to double its sales force to 50 people. In the fourth quarter, earnings rose 83% to 33 cents a share. Sales climbed 78% to $119 million. Institutional business accounted for 18% of that. Analysts expect earnings to rise 72% to $1.65 a shares in 1999 and 27% to $2.09 First Call says. K/T trades as NITE near 52. IN these days of volatile Internet stocks, the company custs its risk by trimming the number of shares its willing to trade. It currently offers 500 to 1,000 shares on the most volatile Internet stocks vs 1,000 to 2,000 shares for other securities. It has had only a handful of losing days. T "There was one big trading-day loss back in October. But they came back the following day and corrected it with a $5 million day" said analyst Darren Lewis of Southwest Securities. The $315 million K/T raised through its recent offering will go into its acquisition war chest, Pasternak says. In December the company bought D.E. Shaw Securities clint lists for an undisclosed sum. Hope someone reads this: it took a long time to post!!!!! Freeus