IMRS A Y2K FIRM SUCCESSFULLY REPOSITIONING ITSELF Message Board

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Technology Stocks : IMRS A Y2K FIRM SUCCESSFULLY REPOSITIONING ITSELF

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To: JDN who wrote (149)	9/30/1999 12:00:00 PM
From: Byron Angel	Read Replies (1) of 188

Hello JDN, we meet again. First MAPX, now here. Always nice to see old friends again. I just took an initial position in IMRS 8 11/32. A chance to buy a growth stock at a value price. I don't expect a quick turnaround in the stock price. However, I think the stock is probably now about as low as it will go, and I want to take advantage of the current low price to start establishing a position. Things I like about this company: They are in a high growth industry and have historically had high profit margins. Mostly because of Y2K the stock is temporarily a bargain. Forward PE is below 10 and PSR is below 1. Sales and earnings growth should resume next year after the Y2K crisis is over. Acquisitions that have been made will also add to growth. These acquisitions give the company new products to sell to existing customers and new customers and new markets to sell existing products to. For example, component development solutions obtained in the acquisition of Lyon Consultants have been sold to existing IMRS clients in the US, and other IMRS services have been sold to existing Lyon clients in France. IMRS has essentially no debt and has enough cash on hand to continue to make acquisitions until the stock price recovers. The company is currently shifting its business model to focus on sectors such as insurance, banking/financial services, utilities, and healthcare, all of which are heavy IT spenders. Although this shift in the business model may have created some short term problems along with Y2K, I think it will start to pay off by next year. The company's global network of offices allows them to stay open and working for their customers 24 hours a day. Their presence in many different countries opens these markets to them. Having work done in low cost areas such as India and Ireland provides cost savings. When smaller IT service companies are acquired by IMRS there are also savings in selling, general, and administrative expenses. The CEO owns in the neighborhood of 17 million shares. Obviously he's going to want to enhance shareholder value. I'm impressed by the recent sales to CMA-CGM and Mitsui. Byron

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