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

To: AugustWest who wrote (1588)	4/17/1999 10:47:00 AM
From: George Gotch	Read Replies (1) \| Respond to of 2414

As you know, the whole net frenzy is based on the assumption of a brave new world. Of course analyst have supported this assumption which I can understand due to the firms they work for are making tons of money with underwriting and venture capital funding. The success of this or others, is pretty much down to perception of the investment public, hype or whatever you call it. This is why AMZN is upgraded to some wild number by DLJ. They just make an assumption that it is a "new economy" and valuation models have changed. Even though making money is pushed out further and further for these firms, it is justified due to some "name brand" premium they will realize in the future. Of course this perception of "new valuation models" is based on an old perception of brand name and success in the market place. Unfortunately, they don't discuss the whole story in that the net will reduce profit margins and price premiums by ease of entry and economies of scale. In conclusion, I guess it is perception momentum investing. Whatever the herd wants to take up, you jump on and ride it knowing at any moment it can all come crashing down. Remember, If these companies don't have to show income, immediate sales, or any relativity to time value of money pricing scheme, then the only thing that moves them lower is a perception change. Happy Trading

To: AugustWest who wrote (1588)	4/18/1999 5:08:00 PM
From: Les White	Read Replies (1) \| Respond to of 2414

Low barriers to entry? I think the CNBC gal was a little flippant with her proclamations. On the surface it would seem easy to start up an internet bank but there are many more barriers to entry than meet they eye. For one thing it takes a little more than a year to get a charter approved for an internet bank, capital requirements are higher, and if you're going to do it right you've got to launch with 50 state compliant products. That's no small task. In fact, Netbank never did get their own charter, they had to buy another bank to get one. And of course there are lots of software and vendor integration issues to work out. The big pieces are there but there's a ton of assembly required. Netbank has a clear lead if only for the short term. But they can do a lot with their lead. AOL did. Les