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<FONT face="Courier New"
color=#000080>Gitanshu,
<FONT face="Courier New"
color=#000080>
<FONT face="Courier New"
color=#000080>before shelling out more than $2K for TradeStation may I suggest
you follow the Omega list for a few weeks. There is much uncertainty about this
company's future, as can be seen from a recent post by one of the listers.
Please find a copy below.
<FONT face="Courier New"
color=#000080>
<FONT face="Courier New"
color=#000080>Hope this helps.
<FONT face="Courier New"
color=#000080>
<FONT face="Courier New"
color=#000080>Michael Suesserott
<FONT face="Courier New"
color=#000080>
>Since this is the omega
list, I think it is not inappropriate at this time
>to ask the users of this
list what they think the future of TS is going to
<FONT face="Courier New"
color=#000080>>be?
I think it is pretty clear
what they think the future of TS is going
to be. Omega has told us.
>From some PR material dated April 20, 2000:
"The company plans to
discontinue all marketing of its client software
products next month in
preparation for the anticipated launch of
<FONT face="Courier New"
color=#000080>TradeStation.com."
Their recent 10Q report
refers to the old products as "legacy client
<FONT face="Courier New"
color=#000080>software".
Their web site
http://www.tradestation.com has only a sexy demo of
TradeStation Pro that says
"Coming Soon". With Omega's record of
delivering a usable product
on schedule, one wonders how soon
"Coming Soon" really will
be.
Meanwhile, the merger with
Online Trading has been delayed by the SEC:
"WASHINGTON -(Dow Jones)-
Onlinetradinginc.com Corp.'s (LINE) pending
merger with Omega Research
Inc. (OMGA) has been delayed because of the
Securities and Exchange
Commission's review of a Form S-4 filed in
connection with the
merger.
Onlinetradinginc.com said in
its quarterly report filed Wednesday with
the SEC that the federal
agency has advised Omega Research that it
disagrees with the timing of
when Omega Research recognizes licensing
fee revenue from the sales
of its legacy client software."
Their recent 10Q report
shows them burning cash at a rapid rate, now
that they have stopped
selling the old products:
"As of June 30, 2000, the
Company had cash and cash equivalents of
approximately $4.0 million,
with working capital of approximately
$15.1
million.
Cash provided by operating
activities during the six months ended
June 30, 2000 totaled
approximately $333,000, compared to cash used
in operating activities of
approximately $839,000 in the comparable
period of 1999. The increase
in net cash provided by operations in
2000 was primarily due to
decreases in accounts receivable and
increases in accounts
payable and accrued expenses offset by net
losses and increases in
income tax assets during the six months
ended June 30,
2000."
The company has been
planning on income tax refunds as a result of
net operating loss
carryforwards:
"The Company recorded a
benefit for income taxes of $4.3 million for
the six months ended June
30, 2000 as compared to a provision for
income taxes of $1.7 million
for the comparable period of 1999,
computed using the effective
annual income tax rate."
One wonders how the tax
refunds might be affected by the SEC review
of revenue
recognition.
The stock closed yesterday
at a bit over $2 a share, a 21 month low.
The following was posted on
a Yahoo message board on 10/2/00:
"While we're disappointed
that this merger has taken an unexpectedly long
time to clear SEC approvals,
the management of both companies remain
committed to the merger and
are very positive on our prospects once the
merger is closed. Our last
update on timing was in our 10Q where we stated
it was expected to close by
the end of September.
We continue to anticipate
that once our S4 is declared "effective" by the
SEC -- and the delays in
this process are related to getting this final
approval from them -- the
actual merging is expected to close ~20 days
later. We expect to announce
promptly after the S4 is effective when the
actual merger will
close.
Considering the many delays
we've had thus far, we are hesitant to set any
new expectations until we
have more information from the SEC. But given the
20 days it will take to go
from being effective to closing, we won't be
closing this
month.
On a positive note, the
delay in merging hasn't impacted the two companies
working closely together
toward the business model and supporting products
and technologies (including
TradeStation) that we expect to implement
post-merger. If I can be of
any further assistance, please feel free to
call.
-SMD
Sean M.
Davis
VP, Investor & Media
Relations
Omega Research, Inc.
(Nasdaq: OMGA)
<FONT face="Courier New"
color=#000080>305-485-7005
The situation seems
reminiscent of the "Osborne Effect" now taught in
most business schools. This
refers to the time when Osborne Computer
announced it's new product
far before they could ship it and when
customers stopped buying the
old product, they went broke.
And one wonders why any
company would want to switch from a business
model where they have a
virtual monopoly to one where they have
thousands of well financed
competitors. It should be interesting to
see how it
develops.
Needless to say, we all hope
that it all works out well and that we
will have a great new
trading platform. But I suspect that there are
a lot of short fingernails
in Miami nowadays...
Bob
Fulks
<FONT face="Courier New"
color=#000080>
<FONT face=Tahoma
size=2>-----Ursprüngliche Nachricht-----Von: Gitanshu Buch
[mailto:onwingsofeagles@xxxxxxxxxxxxx]Gesendet: Wednesday, October
18, 2000 17:02An: realtraders@xxxxxxxxxxxBetreff: Re:
[RT] GEN: for cycle traders
<SPAN
class=290221616-18102000><snip> <FONT
size=2>
Since I don't have/use TradeStation, I guess it is now time
for me to wake up & smell the coffee & get one of those.
Thank you, once again.
Gitanshu
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