SP, Your points are well taken.
>>>I believe Y2K problem will be it's biggest problem<<<
That's interesting...I haven't heard that point of view before. How so? Also, I don't know much about the Y2K problem, but I have read some articles that claim that nobody really knows how bad it is going to be until it happens...if it's really that bad at all. How much of it is hype?
The Y2K problem is something that Cisco has already alluded to in their last annual report as a potential problem that could significantly curtail growth leading up to year 2000. Basically, as the IT for corporations gets increasingly weighted/budgeted towards fixing the y2k bug, that's less money available to buy Cisco Routers/Switches/etc. Are analysts taking this into account when projecting Cisco's or other tech companies growth's? The answer is no and I believe that there was a senator(congressman) that is trying to pass a bill/law that would force companies to make public their y2k problem and inform the public on its impact on their growth and operations. I'm not the smartest person when it comes to the y2k problem but there are many on the y2k threads that are. There are some that predict doom and gloom times(recession???) I for one hope it doesn't lead to that.
Is it all hype? Whether it is or not, I am content to ride the wave and will watch it closely as 2000 approaches. I think the hype will continue and intensify and who knows, hype may become reality. In either case, I believe the stocks will continue upwards. I started this year in april when Newsweek put the y2k problem on their front page. The only y2k stocks I have are CBSL and ALYD. I had IMRS but sold it for minor gain. Either way, I am a continue to hold my Cisco shares, but the shares I own from CBSL alone have rocketed upwards to the point where my gains far exceed my Cisco holdings(I have 1000 shares of both cisco and cbsl each). So I don't mind if cisco drops and agree that it has more downside potential.
Other y2k stocks, take a look at 3 yr charts of anly, kea, and many others. I think CBSL has the most bang for the buck(I could be wrong) but I'm betting it will compensate for any drop in my tech holdings in the coming years.
Looking at some of their PE's, the majority are excellent shorts, but there it is far more possible to get a margin call on these.
DF |
