Further comments on Software sector.......
......Or at least on a portion of it. Save for a few high fliers, the sector has been in the doldrums for a year. I don't know what you mean by a "Y2K" company, but no company with anything short of a death wish would allow itself to be identified as a Y2K company at this point. There are some that have been trying the shake the label for a year and a half and still can't get that gummy stuff of their hands.
So I confess I don't understand what company could take a bigger hit this summer than they already have. The class of the field in the service sector as far as I know are companies like CPWR, CA, MERQ, CDO, IMRS, CBSL. Some of these have managed to tread water through the flight of money from the sector, others are languishing at or near 52 week lows, but with PEs that some would still consider high, but by-and-large the management of these companies is very sharp and they are reshaping their images and substance expertly. Witness CDO recently. And check out COGI.
And, BTW, the Israeli tech companies are also pretty sharp.
Maybe some distinction between software developers and software services is in order. |
