Michael, you wrote you believe CACI, a Y2K laggard so far, will be
a big winner in 1998. I own some CACI, mainly as a hedge against
some of the more volatile Y2K stocks in my portfolio.
On the plus side is a solid, steadily growing core business, and a
surprisingly low P/E ratio in this mercurial sector. On the negative
side is an earnings disappointment last quarter, the fact that their
major Y2K customer is the US government (slow to address the
problem, slow to pay the bills), and a CEO whose philosophy on his
corporation's growth is: "Steady as a dime". When he uttered
that phrase (six months ago as I recall), it prompted Mad Monk to
declare, "CACI is crap".
However, the stock's price has recovered nicely from last quarter's
drubbing, and its comparatively tiny P/E valuation seems to allow
lots of room for expansion. I'm not sure that CACI will be THE big
winner in the Y2K sweepstakes, but I think it should do very well,
especially if the feds get their act together. |
