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Technology Stocks : INFORMATION ANALYSIS (IAIC) - YEAR 2000 Date Remediation
IAIC 4.280+12.3%Dec 16 4:00 PM EST

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To: CalculatedRisk who wrote (1225)1/18/1998 2:13:00 PM
From: cage  Read Replies (1) of 2011
 
In thinking about the claims that PP investors are getting ready to jump ship as soon as the 45 day time period is up, I for one have to say that it is a highly unlikely occurrence. This Q- IAIC has lined up several announcements of contracts as well as other news. A coordinated approach by IAIC and CA is causing a slight delay in some of the announcing(that is normal). It is the contract and revenue size that will determine the way things go and if the y2k problem is growing by the leaps and bounds that the press is starting to announce in all forms, then IAIC will be among the many y2k companies that will have very bullish years.
In addressing the thought that the PP parties will dump all their shares as soon as allowed-think about it-how much will they make on it if the price is 17-18 and they start selling 100,000's of shares at once. They won't get their price-it will drop substantially and they won't be making the 7 a share, or 10-15 a share, some are claiming that is all the PP parties want to make. Even if it goes up to 25 in that time-45 days- the market still wouldn't hold up the price if all started dumping. No, these PP players investigated with due dilligence much more so than the previous PP, the future of IAIC and its product, the y2k problem, and the CA/IAIC relationship and came to the conclusion that IAIC was a very worthwhile place to be. An automated tool company at a time when companies are running out of time. Check out the article in Business Week(Jan. 26 )page 74. Look at just one bank's story(col. 2) that is depending on a labor intensive way of "fixing" the problem. They are on an estimated price tag of 250 million dollars and have only fixed 35% of the problem. They have 1,000 people working on the problem. IAIC has a tool that speeds up the process and cuts down on the labor #'s. Before this year the labor intensive companies got all the "positive press" but IMHO they are not the future-companies like IAIC are.
This is the year of the y2k sector-especially the automated tool-why would investors jump out just as the money started to come in-would seem ludicrous. I believe they are in to make a lot more than 20 a share. You think about it Look into (in debth) who has invested in the PP. Some very impressive parties.
Did the PP investors get in at favorable prices-yes-but venture capitalists usually get a 20% discount on investments like this.
Will they make a higher % than you and I-yes-do you throw away the high % you will make to spite them?
I am not telling you not to sell or buy, just take a long hard look. What makes sense in this year of the 2000 buildup?
A nice day to all.
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