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Technology Stocks : Unisys: Computer Solutions and Services Worldwide
UIS 2.820+0.4%Dec 5 9:30 AM EST

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To: DJB who wrote (2475)10/15/1999 9:02:00 PM
From: Greg Jung  Read Replies (3) of 2818
 
DJB the issue is not how bad we think it is already but how
bad it could get. You quote forward estimates. These are just numbers drawn out of thin air, analysts generally make estimates
on the assumption that a model "works".
OTOH in 1997 this was a $5 stock and my suspicion is that government y2k remediation efforts saved its collective butt. Since then it hasn't earned the amount of money lost in that year, and it should take 5 years at perfect execution to make up for the money lost in 1995,96, and 97.
So to buy heavily into this you are betting against the weight of history. When $5 becomes $50 in two years you can expect a comedown.
Maybe Unisys is inhabited by super-powerful super-intelligent beings
and they can turn lead into gold, no I think maybe not. Join the
rest of the software services crowd, which is valued at PE in range of 10-15. Anything above that will get shot down soon.

Greg
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