To all, Good news. Gartner Group, which rarely does anything right, finally hit one in the bull's eye. They came out with an IT Budgets Survey today that estimated that 44% of IT budgets will be spent fixing the Y2K problem in 1999. Although budgets will be flat, a bullish assumption given lower eps, a huge chunk will be diverted to fixing what they already have, not in buying new equipment for operations.
This is absolutely disastrous for boxmakers, chip makers, chip equipment and non-Y2K software cos. The impact on the Internet scam stocks is harder for me to figure. If Y2k impacts advertising, it would be a bit more obvious.
So, though I am betting that Keane gets an order or two out of this mess, long puts on most tech stocks still looks like the smart way to bet.
Good Luck,
MB |
