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Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank -- Ignore unavailable to you. Want to Upgrade?

To: Mike Milde who wrote (1374)	4/11/1999 6:54:00 PM
From: Brentsky	Read Replies (1) \| Respond to of 2414

Guess I don't get it Mike, sounds like my credit union, and they are local. I can talk to a real person and my checks have a bank name everyone recognizes. But more importantly, tell me how NTBK is going to make more margins than a normal bank. They pay 3% interest and collect a 2% on loans. And, forget the bricks and morter crap, internet anything is not cheap. Software (website programmers etc.) cost 10 times as much as a bankteller!!! So after it is all said and done, NTBK makes no more margin than say Wells Fargo. The banking industry is a low margin, limited service industry. Hell, PC resellers make more margin (8-10%) than banks and their stock prices are tumbling. Oh, so the difference between Wells Fargo (which is getting into internet banking in a big way!) and NTBK? Wells Fargo and other banks have Price/earnings ratios around 20-25, whereas NTBK now has a PE around 200!!!! Means earnings have to grow in a huge way (see other posts where I've explained how flat earnings are for NTBK) or the price has to go back down. If a was a new NTBK investor, think I'd wait to see earnings before buying a bank (which happens to be on the internet) at a PE ratio almost 10 times above the banking industry average! Brentsky