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Technology Stocks : Technology Solutions Company (TSCC) Upcoming Spin-Off

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To: baddtiming who wrote (28)2/17/2000 4:48:00 PM
From: Trenton A. Scott  Read Replies (1) of 38
 
Yesterday, the CRM (Customer Relationship Management) unit of TSC (TSCC, $7/share) was spun-off as eLoyalty, Inc. (ELOY, $38/share). The ELOY spin-off reflects management's interest in the fast-growth CRM marketplace and the corresponding high growth rates in ELOY. Now, TSC is a pure-play in systems integration and ERP package implementation, and ELOY is a pure-play in CRM. TSC's lower price reflects the slow growth its ERP business experienced last year; ELOY's higher price reflects its higher growth rate.

Future prices? I think both companies are good long-term plays, with TSCC probably a little under-valued right now and ELOY perhaps a little over-valued. For long-term investors, however, I think both stocks will perform well from here.
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