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Technology Stocks : JW Genesis (JWG) - online trading in the future? -- Ignore unavailable to you. Want to Upgrade?

To: DavidCG who wrote (60)	6/2/1999 10:11:00 AM
From: William F. Wager, Jr.	Respond to of 78

BOCA RATON, Fla. (Dow Jones)--JWGenesis Financial Corp. (JWG) completed the sale of its JWGenesis Clearing Corp. unit o Fiserv Inc. (FISV) for $59 million cash. In a press release Wednesday, JWGenesis said it expects to report a pretax gain of about $25 million in the second quarter ending June 30. For the second quarter ended June 30, 1998, JWGenesis reported net income of $1.8 million, or 38 cents a diluted share, on revenue of $26.9 million. JWGenesis also expects to record an additional $15 million of deferred pretax gain which will be accreted into income over the next 10 years. JWGenesis said it also has contracted with Fiserv Correspondent Services Inc. to provide the retail securities operating subsidiaries of JWGenesis with back office clearing and transaction processing services. JWGenesis Clearing Corp. will continue to operate from its current Boca Raton location to ensure uninterrupted and consistent service. JWGenesis Clearing will continue to operate under its existing name for a transition period, but, will ultimately become an integrated part of the Fiserv Correspondent Services business. JWGenesis provides financial services.

To: DavidCG who wrote (60)	6/4/1999 7:44:00 PM
From: William F. Wager, Jr.	Read Replies (2) \| Respond to of 78

??What to do with $59 million in cash??--------------------> DJ JW Genesis Exec Sees Need For Brokers Amid Online Hype By Lynn Cowan NEW YORK (Dow Jones)--Merill Lynch & Co.'s (MER) decision this week to offer discount online trading is expected to spur a rash of similar plans on Wall Street, but JW Genesis Financial Corp. (JWG) still sees the need to increase and nurture its broker staff. When Merrill announced that it would offer $29.95 online trades by December, some on Wall Street saw it as the first admission by a bulge-bracket firm that brokers are becoming obsolete. JW Genesis doesn't see things that way; the Boca Raton, Fla., firm is hoping to boost its brokerage staff to 1,000 brokers and trainees from about 700 by the end of the year, and is fairly rubbing its hands in glee over the idea of disgruntled Merrill employees seeking greener pastures, Vice Chairman Joel Marks told Dow Jones Newswires. That's not to say JW Genesis isn't working on an online trading strategy, Marks said. It's just that executives don't want to set up a Merrill-style discount-trade program alongside its full-service brokers, Marks said. "I think everyone was waiting to see what Merrill would do, thinking they would then do the same thing," Marks said during a visit to the company's New York City office Thursday. "Well, we saw it, and we're not going to do it." While JW Genesis would consider offering its customers some online trading as part of a broker package, forming a strategic partnership with an existing service, or possibly setting up a stand-alone trading unit similar to Morgan Stanley Dean Witter & Co.'s (MWD) Discover Brokerage, it doesn't want to cannibalize its traditional business with standalone low-cost trades under the JW Genesis brand, he said. "We'd look to use the Internet to supplement and support our brokers," Marks said, adding: "I'm always scared to bite the hand that feeds us." JW Genesis' strategy is likely to attract speculation now that the firm has completed the sale of its clearing unit to Fiserve Inc. (FISV) for $59 million cash. But the new infusion of money doesn't necessarily mean the firm will embark on an immediate spending spree, Marks said. "That money gives us peace of mind, security. It positions us to take advantage of opportunities as they come up," he said. Among the opportunities that JW Genesis sees is taking over smaller broker-dealers that are faring poorly due to industry consolidation and competition from discount online brokers. The money will also increase its ability to hire more brokers, who are often concerned about financial stability outside the bulge-bracket firms. Having a cash cushion could help allay those fears, especially if the market sours, Marks said. "We're plodders. We're successful because we're careful. We've been studying the Internet for many months, and, yeah, we've missed some windows of opportunity," Marks said. "But being successful is more important than being first." --Bill