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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion

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To: paul e thomas who wrote (13177)10/31/1998 9:25:00 AM
From: paul e thomas  Read Replies (1) of 13949
 
SERVICE COMPANY STOCK AND COMPANY PERFORMANCE
Media General lists 38 IT service companies in the same industry segment as IMRS and the other Y2K service company stocks we discuss frequently.I ranked this list on the basis of the PEG ratio based on the current year earnings forecast and the forecasted yearly earnings growth rate.There are 9 Y2K companies listed with 7 having all the data to calculate PEG.These seven are clustered rather closely as they are ranked between # 13 and # 23.I separately got the percent price change since August 20 which was about when most of the previous quarter results were out.

STOCK PEG PE % 50 DAY PRICE CHANGE

MAST .41 35.1 - 7
IMRS .38 35.1 -19
CBR .38 19.8 -42
CBSI .28 31.7 -14
CHRZ .27 16.8 -36
KEA .22 23.6 -40
SYNT .20 24.1 -33
These 7 stocks have more different PE ratios and price changes than they do
do PEG ratios. This suggests that the market is paying some attention to
is valuation measure. It would also suggest that the price of IMRS and CBSI
should not change much after the earnings are published next week unless
there is a significant earnings surprise,which I believe is unlikely.It is also
clear from this analysis that the market is more apprehensive about
longer term earnings prospects for KEA and SYNT than the others.There are only
4 of the service companies with PEG ratios above 1.0. This list includes EDS
and CSC which are really ather large capitalization stocks.
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