Andrew, The Valuation of y2k stocks....
Note that the PEs of Y2K companies that do systems Integration are high and the stock prices hoevering at new highs...CBSL, MAST, KEA, CHRZ, CPWR, IMRS. But the stock prices of pure tools people have collapsed....PTUS, DDIM, VIAS, ZITL/MD. The market is already figuring on longevity as a variable. The systems integrators will have work after 2000, the tools poeple won't if they don;t figure out what else to do. For this reason, I started postions in CHRZ, MAST, IMRS and DSYS last week while the stock prices were depressed. Also loaded up on DDIM, contract with Kaiser-Permanente indicates they are trying to get out of royalty mode into growth mode. PTUS is also trying to do with this purchase of Millennium Someting or other company.
I think the market is still confused about how to view TPRO. IMHO, the market is valuing it like a engineering services company first and systems integrator second. If it ever starts to make the transition from engineering company to software toolset company, this stock will be valued much much higher. If Diana Corporation can go from a fish market to Internet provider, why can't TPRO make that transition? <g>
DocStone |
