Okay, TECH sells CSGI because the stock hasn't moved, then it goes down 10% giving Tech a new entry level. hmmmm.
Gotta' do it.
I had a very interesting conversation yesterday with a consultant I frequently talk to, who owns a lot of CSGI. They seem to feel that we are on the verge of seeing this company "break-out" onto the y2k seen in the next 30 days.
"I am going to go out on a limb here, but I think that we will see 90% to 100% move in the stock price from these levels."
I was reminded that CSGI's burn rate is only approx. $4 million per year and one or two large contracts or several small contracts could make them profitable.
Well, we already have LSI, and we will see revenues coming in from the
revenue sharing portion of the Millennium contract.
We have a good chance that Motorola will give us a project.
Merril Lynch has 180 million lines of code to convert and they have hired 200 full time programmers to do the job.
I think it would be reasonable to assume that if we can successfully complete the LSI migration / Y2K conversion project, we should be able to at least, considering LSI is their subsidiary, do a demo for them.
Some of the other Y2k companies have started to see some business come in the doors this month. This is a good sign that points to the flood gates opening sooner than later.
I was also reminded that CSGI is not all alone in trying to get business. We work with Millennium, Strategia, Agiss, and SCBI.
We actually have the marketing arm of 4 companies and once contracts start to roll in, CSGI's tool could be in great demand by all of them.
I was also told that we are working on getting some new teaming partners and "some of them are very well known names in the Y2k arena." (sorry, no details were given.)
"I think that this is the quiet before the storm and when the stock jumped up 30% last week, it was in anticipation of something coming out." |
