Investors Digest..July article!!Take refuge in these small low-profile stocks by Phil Speller.
Updates on other "roses in the briar patch" include imminent announcement by Capital Alliance Group (CPT-CDNX, $0.55 604-871-9909 www.cag-global.com) of initital results of trading on subsidiary SE Global Equities virtual international trading platform.
Despite the general slowdown in trading that has undoubtedly contributed to CPT's disappointing market performance in recent months, direct access trading is increasing rapidly.
Direct Access Trading
Recent studies indicate that daily trading activity from direct access trading firms increased 55 percent in 2000, while average daily trading at web-based firms decreased by 33 percent.
Today it is estimated that ECN's (Electronic Communication Networks) now account for close to 35 percent of Nasdaq trading.
Of even more importance to CPT is that fact that non-US accounts are expected to account for 40 percent of world wide online accounts by 2004 with SEGlobal Trade geared heavily toward active traders, the impact could be dramatic, with the average ECN trader making 14 trades per day, whereas 95 percent of all online accounts make no more than one trade per month.
With a view toward strengthening corporate infrastructures, CPT has signed a letter of intent to acquire Global American Investments, Inc. a registered broker-dealer in California . GAI is registered in 44 states and will allow SEGB users to have access to a variety of other notable trading systems and clearing options.
We understand the purchase of Global American and a second to U.S. broker/dealer, Allen Douglas Direct are essentially complete and that a third firm is ecpected to be acquired shortly. While small, these firms will provide significant leverage to SEGlobal's/CPT's bottom line as initial start-up costs are expended and volume builds from 27 brokerage firms in 24 countries now online.
We would expect cash breakeven to be reached by year-end and significant net income to be generated in 2002. Positions in CPT should be completed around current levels.
P.S.
We understand the purchase of Global American and a second to U.S. broker/dealer, Allen Douglas Direct are essentially complete and that a third firm is ecpected to be acquired shortly.
Is the Florida broker-dealer that we are to acquire Allen Douglas Direct?
SE Global Equities announced that it has entered into a non-binding Letter of Intent to acquire a U.S. registered broker-dealer based in Florida. The target company focuses on providing brokerage services to active traders, and had unaudited revenues for the quarter ending March 31st, 2001 of $523,000.
https://www.cag-global.com/news/march-12-2001.html
https://www.cag-global.com/news/June-19-2001.htm
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