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Technology Stocks : VIAS VIASOFT & THE Y2K PROBLEM

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To: Dale Baker who wrote (1099)1/14/1998 11:05:00 AM
From: TEDennis  Read Replies (2) of 2067
 
Dale: Re: short-term price implications ...

No clue. Never heard of EraSoft, but I do like the fact that they complement Viasoft's mainframe toolset with a desktop toolset. Can't figure out what it does from the tidbits that were in the press release.

It mentions the Euro conversion, also, so maybe VIAS is looking at this as their springboard to a post-2000 market. They already have a mainframe component that focuses on Euro-stuff, but it doesn't get much notice because of the success with their mainframe Y2K stuff.

My SWAG is that the acquisition announcement won't do much to the stock price right now. The quarterly numbers will be coming out soon and that will be the primary driving force. This acquisition will be a charge against their next quarter's numbers. That might do some damage.

I haven't studied the desktop problem enough to even be able to offer an opinion about whether they'll get any big contracts just because of this acquisition. Apparently somebody at VIAS thinks it's worth the risk, though.

I'm STILL looking for 45-50 by the quarterly report. I hope, I hope, I hope.

Good luck,

TED
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