Enigma,
I was following KEA, CHRZ, TAVA, and a few others. However, they have just been absolutely hammered. Part of this lies in the fact that if they only have Y2K oriented work, the market has discounted their earnings potential post-2000.
But then again, if they emphasize their systems consulting and BRP/ERP role, the market discounts their stock due to the perception that 2000 will have a disruptive impact on their non-Y2K business.
Look at what happened to MANU, BAANF, and PSFT as examples. I heard that Y2K was a factor in analysts downgrading their projections for these companies, and probably rightfully so.
However, I have little doubt that KEA, TAVA, as well as the others, will find themselves in sharp focus by the markets in 1999 and both of these companies have core and Y2K focused work.
There will be a lot of work to do post-2000, especially for TAVA which is primarily an embedded systems play (They have a database of literally 40-50,000 various embedded chips and their particular compliance level).
My opinion is, if there is a market that still looks for a hot sector, the Y2K stocks will likely be were it will be.
Where else will investors be able to find some assurance of stable or growing earnings? Internet stocks which rely basically on other corporations willingness to pay them advertising revenues?? (first budget items to usually be cut are security and advertising...:0)
My prediction? I think Y2K stocks will once again find favor with the street and the daytrader sector.
What's your take on that hypothesis?
Regards,
Ron |
