Mr. Bond: Us longs welcome you with open arms. We will be glad to unload our over-priced cookies to you, the new bagholder.
I have been chatting with you for months and believe you were kind of hung up in the valuations of the Y2K issues. It is an established fact that fundamentally, all Y2K stocks are over-priced with absurd valuations in comparing with others. But what should be their proper PEs, price-to-sales and market capitalization? No one has the answer. For example, most fundamentalists agree that a yield of less than 3% in DJI stocks is over-valued. But the often-ignored fact is that the DJI stocks have been yielding less than 3% for the past 7 years and are still climbing the wall of worries. Now back to the Y2K sector, most short players use the PE and market capitalization to justify their short positions. But they fail to realize that Y2K is unique with a fear factor embedded in both the private and government sectors like a humongous nested "if" statement (For an explanation of this jargon, please contact Kevin Watson, our resident /* // guru). No one on this bloody planet can quantify fear. When fear strikes, my mad vision tells me that all Y2K stocks should have a PE of 200 plus and a market capitalization of at least 1 Billion dollars each. Yes, they will be bigger than Microsoft, IBM, DEC, GM, Ford and others because without Y2K fixes, these companies will have no compliant products and no clients will have the luxury of buying their "fluffy" products while fighting for their own survivals.
On Tuesday, IMRS inked a contract with Kick the Pharmacists' As*es in UK. On the surface, most investors would discount it as just another contract, but according to my venerable mentor's deep sh*t thinking:
1.This is the first significant breakthrough by an US outfit in UK which has a 5 Billion plus Y2K market.
2.IMRS had already generated 3.9 million dollars in sales in UK last quarter. This announcement all the more reinforces its leadership role in the Y2K market.
3.IMRS is solidly profitable in UK while the other players ( names withheld because I don't want 006 to show up with her weapons in my bedroom) in UK are still in the red.
Newspapers in UK report repeatedly that time is running out. Yet both private and public sectors are dragging their feet. Well, I guess we are all human who loves to wait until the last second to react, to have fun in the "happening" together, to enjoy bankruptcy parties while going down in songs and dances, to witness flaming disasters unfolding in slow motions, and above all, to savor the thrill of surviving the coming Second Depression in year 2000.
Have a great week.
Regards,
Mad Monk
PS. See you on the beach in 2000? Well Robert, you might be cutting it too thin. What's wrong in leaving some cookies on the table in 1999? |
