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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: TIGGY who wrote (15797)5/1/1998 1:24:00 PM
From: JSI  Read Replies (1) of 31646
 
"He predicted mergers and acquisitions activity will decline in the
second half of 1998, and that prices for ensuing deals won't be as lofty as in the recent past."

I have to disagree with this part of the article. I would think that you will see mergers and acquistions become much more commonplace. As smaller companies ($50MM to $250MM) come to terms with the incredible cost of becoming Y2K compliant, they may have to face the decision of selling out, vs. trying to pay for the fix. This opens the door for larger companies, who have already begun their Y2K conversion process, to step in and pick up the pieces.

I realize that there is difficulty involved with migrating one business system into another; however, it is very possible that it would still be much cheaper than trying to convert to Y2K compliance.

I would watch small to mid size (especially local banks with anywhere from 2 to 10 branches), small utility companies, insurance companies, etc. We may not see large mega mergers like DEC and Compaq, but there will be probably be a glut of smaller ones to make up for it. IMHO JSI
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