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Pssssst.............sssshhhhhhhhhhhh....over here................................
Monday July 28 4:21 PM EDT
Company Press Release
Source: Innovative Research Associates
Innovative Research Associates Comments on a Year 2000 Stock Rally - in the Midst of a Significant Market Decline?
NEW YORK, July 28 /PRNewswire/ -- The following is being issued by Innovative Research Associates:
Innovative Research Associates believes that the potential for a significant rally in Y2K stocks may be at hand. The catalyst will be the scheduled appearance on Wednesday, July 30th of Federal Reserve Board Chairman Alan Greenspan and other luminaries before the Senate Banking Committee to elucidate its members on the Year 2000 catastrophe. It would seem obvious that Greenspan et al are not going to present a Panglossian viewpoint; after all, how can they? The government is faced with the Herculean task of correcting its hydra headed bureaucratic computer systems; knowledgeable Y2K players know that U.S. and overseas corporations are also woefully behind in addressing the Y2K miasma. Thus, how is the ``man who moves the market'' going to issue anything but dire predictions?
This very public and media oriented occasion could be the ``what can go wrong'' event that will shake the overall stock market out of its lethargic summer complacency, creating the first real panic selloff this aged Bull Market has experienced. Even without this scenario occurring, the Y2K predicament is going to be exposed to a very broad audience with the reasonably certain outcome that hundreds of thousands of new investors will become enamored of Y2K stocks. It's hard to believe that upward pressure on prices will not be exerted.
IRA urges savvy investors add to or establish positions in the following companies now:
Strategia Inc. (OTC BB:STGI)
As the only ``pure'' play in the critical testing phase of Y2K compliance, STGI is going to be a major beneficiary of the Y2K largesse. Management has depth, is sound and experienced and the Company should experience a rapid ramp up of revenues in the 3rd quarter 1997. 1998 is already shaping up to a ``telephone numbers'' year and the stock is very cheap in relation to others in the Y2K arena and on the potential earnings power. An American Stock Exchange listing is anticipated in early August which will increase visibility and liquidity. This is almost as close to a ``no brainer'' as we have discovered. A strong buy up to the old high of 15-5/8.
Agiss Corp. (OTC BB:AGCR)
The Company is the exclusive licensee of ConSyGen's (OTC BB:CSGI) fully automated toolset and will be opening its first conversion center in Canada in September.
This stock probably has the most potential for the largest percentage gain in any Y2K rally. Ottawa-based, with a seasoned management and the finest technical people in the business, AGCR stands to be a significant element of the Canadian Government's Y2K budget ($7 Billion estimate). The Company was awarded its first contract last week and while volume in the stock was good, the price actually declined. We attributed this to a recent 504 financing @ $1.05, with some participants, unable to resist better than a double of their money in a short period. We believe that other contracts revealing more specific details will be forthcoming shortly and the stock could trade up to its old high of $6 as the Company becomes better known in the United States.
ConSyGen (OTC BB:CSGI)
We have been repeatedly told by numerous respected Y2K technicians that the ConSyGen automated conversion toolset is one of the finest and most effective available. This opinion was recently verified and validated by a highly respected independent software firm completing a successful 1.4 million line automated code conversion on an Hewlett Packard HP 3000.
The stock has languished in the $10-12 range for some time, a fact we attribute to investors' concern with the marketing and operational abilities of current management. The recent agreement with AGISS Corporation to open a ``conversion factory'' in Ottawa, is the first substantial sign of management's new flexibility, and should be the basis for other similar arrangements.
Should ConSyGen announce a couple of real money earning contracts in the next month or so (and we believe they will), this stock could catch up with Alydaar and TSR in terms of price movement. The risk/reward ratio at current prices is compelling.
One Up Corporation (OTC BB:ONUP)
While IRA has not completed its due diligence, we are impressed enough over what we do know to recommend that at least partial positions be instituted immediately in this turnaround situation. One Up possesses a state-of-the-art, proprietary migration tool for OS/2 users (read IBM) who need to update their systems to Windows 95/NT. While the tool apparently does this effectively, it also can partially automatically correct the OS/2 code to be Y2K compliant.
A substantial test of the system by a Fortune 100 company is slated to begin early August and results should become available in early September.
New management is impressive; the market is huge and the market capitalization is very reasonable if the Company can take advantage of its opportunities. At $.65 this stock has $1.00 written all over it.
Innovative Research Associates and its principals and employees may hold stock positions and have an interest in options/warrants in the securities mentioned within this report.
For information on the companies in this report contact IRA at 212-421-2545
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SOURCE: Innovative Research Associates
Contact: Thomas M. Dean of IRA, 212-421-2545
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More news for referenced ticker symbols: AGCR, CSGI, ONUP, STGI, and related industries: banking. |
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