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

To: Jim Bautch who wrote (789)	5/5/1999 9:04:00 AM
From: Joseph F. Hubel	Read Replies (2) \| Respond to of 10027

I watched it all day and though I knew it was weak, especially after Monday, I thought a trading base had formed. I don't always get them right, but when I saw it was going against me I sold at 143 and got back in at 133 just before the close. I still contend the stock did not go down so much from being over bought but from interest rate fears which affected all the financial stocks. This is not the first time NITE has taken a dump of this size, but almost always comes back to end the week higher than the previous week. I expect a bounce back today of about 10 points. It may be weak at the open but then recover. Just my thoughts. JFH ****************************** Online brokers Shares of most online brokers lost ground even after Credit Suisse First Boston, online brokerage analyst, Bill Burnham, said that online firms saw trading volumes grow 67 percent in April over March and that "overall volume trends are promising." Shares of Ameritrade (AMTD: news, msgs), Charles Schwab (SCH: news, msgs), National Discount Broker (NDB: news, msgs), and E-Trade (EGRP: news, msgs) gave back their earlier gains. Richard Strauss, brokerage analyst at Goldman Sachs, is also quite bullish on volume trends, but does admit that "a lot of the strong trading volume is priced into these stocks and they're trading at high valuations." Strauss, however, said "These guys still represent a cultural phenomenon," and "they're still growing like weeds and eating everyone's lunch in the brokerage industry." Strauss expects Ameritrade's average daily trading volume to rise to 57,000 traders per day by the end of this year. A beneficiary of those online trades from Ameritrade has been Knight/Trimark (NITE: news, msgs), and investors have certainly acknowledged that. But after running up 30 percent last week and gaining in Monday's depressed market, shares dropped 21 3/8, or 14 percent, to 132 on Tuesday. The over-the-counter market-maker is viewed as a beneficiary of the significant increases in online trading volume. The bulk of order flow from e-brokers such as E-Trade (EGRP: news, msgs) and Ameritrade. In the month of April, Knight/Trimark's share of over-the-counter trading volume grew to 18.4 percent, from 15.8 percent in the first quarter, according to AutEx.