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Technology Stocks : Keane The leading y2k service provider
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To: Kal who wrote (379)2/12/1998 4:14:00 PM
From: Hardware Heister  Read Replies (1) of 1316
 
I'm only speculating, but I believe part of the reason Keane's earnings weren't higher stem from the cost of labor these days in I.S.

Keane runs ads constantly in my area (NYC, NJ, CT) and they appear to be actively hiring. The people they are bringing in are probably costing them a pretty penny, because no one is cheap these days.

On the other hand, the fact that they are hiring on a continuous basis suggests that business is very healthy, as was reflected in the revenue and earnings growth figures.

I personally think they are a top notch firm, a step above some of the other firms that people always mention in the same breath as Keane.

But I think the stock price reflects a lot of expectations over the coming year. The expectations for growth may well be met, but the hiring thing is most certainly constraining.
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