To: Jenna who wrote (36782 ) 4/27/1999 5:05:00 PM From: bobby is sleepless in seattle Read Replies (1) | Respond to of 120523
nite, an absolute....SWS, honorable mention...found an interesting perspective from YHOO poster regarding SWS... SWS to put EGRP, AMTD out of business by: zavaidoc 1317 of 1348 This assertion might sound like fiction, but such a scenario is not only possible, it is probable. It's reality. I expect it to happen. Here are a few facts: SWS is making tons of money out of their market making and clearing business. They are also involved in a lot of internet software development, including ISP, through their technical divison, SWS Technologies. The recent aquisition of NetSuccess strengthens SWS's technical muscle even more. On top of that, the 1.7M NITE shares (worth ($200M + as of today) which SWS holds provide an unbelievable financial capability. Though MDB's (Mydiscountbroker) contribution to their revenue is growing, it is still not significant. On the other hand, MDB is technically comparable with EGRP, AMTD and all other major OLBs' sites (http://www.keynote.com/measures/brokers/, mydiscountbroker.com . All things considered, SWS can live and prosper without any significant revenue coming from MDB. Therefore, "one day" (remember EGRP's slogan?) SWS could simply offer free trades on Mydiscountbroker.com. As a result of that move, the traders would defect en masse from EGRP, AMTD, JBOH etc., joining MDB. That hit could be mortal for many OLBs, whose revenue derives exclusivly from trade fees. EGRP might survive (it has an infusion of Softbank capital) but many others would sucomb. SWS will only compete with Schwab and a very few others. This is why SWS is not interested in spending big bucks on advertising today, like EGRP, AMTD and other pure OLBs do. When is the offering of free trades going to happen? Probably after the new CSS software is completly rolled out and SWS technicians are sure that MDB can handle an enormous number of accounts. Here is a relevant excerpt from SWS latest report: <<. We believe our investment in technology, especially in the Comprehensive Software Systems(TM) (CSS)(TM) software, is positioning Southwest as a dominant force in the securities business.''>>