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Technology Stocks : Keane The leading y2k service provider

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To: freeus who wrote (1156)4/26/1999 3:17:00 PM
From: Sun Tzu  Read Replies (2) of 1316
 
I was discussing KEA over the weekend with a friend. I made my long term bullish case for it based on this:

The company had tremendous growth between '92 and '97 when there was no Y2K related work. Therefore, it is likely that they can continue to do well after 2000.

Y2K revenues are about 1/3 of total revenues but the stock has fallen by almost 2/3. Therefore a bounce to 30 is very likely.

The stock is trading at about the same levels as in '97. The buy decision should be made in a good part if you believe it is a better company now than it was in '97. I believe the answer is YES! because the Y2K contracts have gotten KEA a shoe in a lot of companies and there are a lot of contracts on back log due to Y2K issues.

good luck,
Sun Tzu

P.S. I am very interested to hear the bearish case (or even the case for not buying KEA).
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