Yr2k sector
Recently I've gotten some private messages regarding this sector and am responding via the Idea thread. My vision for the yr2k sector follows and the market will decide if it shares the same vision in the coming months. This will be the last post on this topic and I shall not repeat again.
I've posted my views on yr2k in '96 and those views have not changed, but the set of worthy trading/investing yr2k stocks have. This April I posted on a yr2k thread that the sector was going to get battered and to reenter when the sector bottomed ... for later this year or early next, the crap will hit the fan. Companies should become frantic to resolve yr2k issues that they have taken a complacent view towards. Anyone who tries to quantify the yr2k problem is just making an academic stab, NO ONE knows the full extent and how much is hype or not.
I've posted the yr2k sector was turning up weeks ago. Technically there was convergence of emas and I often take positions in stocks as they cruise thru their 200-day emas from below, depending on my outlook of the market and vision for the company's future. The yr2k stocks that I have liked in the past and continue to endorse are
KEA, CPWR, CHRZ ... sector leaders making new highs except for CHRZ. Broader spectrum companies than just yr2k, CHRZ lagging behind because the Street is not convinced of its strategy beyond yr2k.
MAST, IMRS, CBSL, SYNT ... service providers, bodyshops. There is and will continue to be a shortage of knowledgeable yr2k programmers. When the crap hits the fan, the companies with past track records of problem remediation will be sought after. The real yr2k players will soar, even the imposters will rise.
TAVA ... speculative play in a specialty niche. Yr2k remediation of embedded systems.
Finally the yr2k sector is not for the faint of heart. When the sector was soaring early this year, people were chasing them and wanted the stocks to correct to present buying opportunities. Then in April-May the sector got really smashed, who but a few hardy souls bought? Now the sector appears to be rebounding and people are interested again.
A matter of vision, a matter of risk tolerance, a matter of money management.
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