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Strategies & Market Trends : A.I.M Users Group Bulletin Board
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To: RFH who wrote (7211)4/10/1999 11:09:00 AM
From: JZGalt  Read Replies (1) of 18929
 
but I'm holding out for lower prices.

Thought you guys weren't supposed to do that? <grin>

What's the scoop?

The budget impact from Y2K has been more significant than most investors anticipated, leading to a string of pre-announced earnings shortfalls within the technology consulting area and the ERP area. The momentum investing driving this market has largely bypassed this sector, with most stocks dropping 50-70% from last year's highs. The impact of Y2K, coupled with difficult prior year comparisons, has heightened the risk of earnings shortfalls in these groups. I would not expect a quick rebound in the group while the psychology remains poor, but many of these stocks are now trading near historical lows and patient investors should see a rebound once the survivors become apparent.

Frankly, people are buying growth and the perception of growth and paying through the nose for it. Value of growth at a reasonable price has no appeal these days especially if there is a taint on the earnings front. AXNT, HYSL, DCTM have all been hit when they pre-announced shortfalls. In some cases the drops have been 50-70% after an already considerable decline YTD. AXNT went from $37 to $8 in two weeks or so.

Specifically in the case of CHRZ, the 1999 estimates are dropping over the past 3 months. People are trying to avoid another CTAP debacle IMO. Good for you if it survives.

----
Dave
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