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Technology Stocks : Keane The leading y2k service provider
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To: Mark T. Heath who wrote (256)12/29/1997 6:19:00 PM
From: Hawkmoon  Read Replies (1) of 1316
 
Mark,

Those acquisitions will likely occur at a substantial discount to NAV or Book value. This has been one of my concerns regarding the recent spate of financial mergers. I don't believe the acquiring companies have completely factored in the costs implied in meshing disparate IT systems, as well as remediating Y2K.

I have never shorted a stock in my life, but I may be looking a couple of these banks. However, the timing will all depend on when the market realizes these companies have accrued substantial liabilities that will definitively hurt their bottom lines.

And that "bomb" in Asia is just a "firecracker" compared to what will happen when the Y2K denial ends and desperation commences.

I foresee some of the more progressive US financial entities acquiring these overseas financial markets at a heavy discount over the next two years. Nice for the long term position of these banks, but short-term it will produce some heavy operational costs.

Regards,

Ron
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