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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion

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To: paul e thomas who wrote (8711)1/5/1998 4:03:00 AM
From: P. Ramamoorthy  Read Replies (1) of 13949
 
Paul - "Exceptional business oppportunity" is the truth. There are many paths (some as tortuous as the one Raymond James took) to get there. Traditional valuation tools and indicators may not apply to y2k stocks: sequential earnings growth, 3-5 year projections, PE or PS ratios, etc. Perhaps account receivable on completed contracts may help. But we do not know how the legal problems will affect the cash flow to y2k companies after the remediated code is put to use. Short term moving averages seem to be helpful in determining their price direction. There is bound to be an explosion (asymptotic rise!) between now and mid 1999. The fast-growing stocks might also split, in order to maintain investors' interest. Tool vendors and conversion houses will reap the greatest amount in these exceptional times. Analysts' predictions and financial magazines will be proved wrong. Key word is "exceptional business opportunity". Ram
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