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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Onedodd who wrote (25988)	6/4/2001 10:02:13 PM
From: limit	Read Replies (4) \| Respond to of 37746

Agree. Tons of money on the sidelines. Everything bad factored and billions of govt money returning to their owners. There is still crap (beas..ebay..palm...hand..aol..ect) but the money to be made is long. Sleep good shorts.

To: Onedodd who wrote (25988)	6/4/2001 10:55:28 PM
From: Frederick Langford	Read Replies (1) \| Respond to of 37746

Here's something a bit more bullish for ya... Stock Focus: Turnaround Tech Companies By Megan Mulligan The daily business news isn't getting any cheerier, but the worst may be over for some consulting and software companies, some of which are expected to rebound from losses last year to profits this year. One example: KPMG Consulting , which specializes in Internet-related projects and systems integration. The company, which has more than 2,500 clients worldwide, was formerly a subsidiary of accounting firm KPMG, but became public in February in a $2 billion offering. Over the 12 months ended March 2001, KPMG Consulting lost $1.52 per share, partially due to a joint venture with Qwest Communications International . The firm has since turned its focus to the financial sector and made steps towards increasing efficiency, such as cutting its U.S. and Canadian workforce by 500 employees. Shares of KPMG Consulting hit a 52-week low in April but have since climbed 70%. Analysts expect the company to earn 91 cents per share this year and $1.39 next year, giving it estimated price-to-earnings (P/E) multiples of 20 and 13 for 2001 and 2002, respectively. We screened for technology-related companies that lost money last year but are currently expected to post profits both this fiscal year and next. We culled out companies expected to earn less than 15 cents per share in either year, because it wouldn't take much of a setback for them to end up with losses. The companies in our table each have a market value more than $100 million and a 2001 P/E under 50. This last screen eliminated widely traded stocks like Cisco Systems , Xerox , Yahoo! and Gateway , whose prices have stayed high relative to their near-term earnings prospects. Former Wall Street favorite Computer Associates lost $1.02 per share last year. The company has also come under fire for its accounting methods. In May the company released figures showing that under standard accounting rules, last year's performance was worse than the pro forma numbers previously reported by the company. Computer Associates is not without some risk, but security analysts think the company will earn $1.98 per share this year. Note that the Computer Associates' 2001 per-share forecasts range from $1.70 to $2.03, indicating that analysts are far from unanimous. Shares of Computer Associates sell for 15 times the 2001 consensus estimate. EXE Technologies provides inventory and supply chain software to large corporations like UPS and Safeway. After posting a loss of 12 cents per share in 2000, Thomson Financial/IBES analysts estimate that the stock will earn 19 cents per share this year and 34 cents in 2002. Computer Task Group , which now has a market value of only $114 million, is also expected to return to profitability this year. Last year the consulting firm lost 35 cents per share, but this year it is expected to earn 18 cents. One-quarter of this firm's revenue is with one client, IBM . Such dependency on a single company as solid as IBM has both advantages and drawbacks. Soon-To-Be Profitable Tech CompaniesPrices as of June 1. EPS: Earnings per share. Latest 12 months ended in March. Sources: Bloomberg Financial Markets; FT Interactive Data, Market Guide and Thomson Financial/IBES via FactSet Research Systems Company Price 2000 EPS 2001 Estimated EPS 2002 Estimated EPS Market Value ($mil) Avaya $16.29 $-1.39 $1.18 $1.70 $4,623 Avocent 22.20 -3.92 1.17 1.60 980 Cabletron Systems 19.10 -3.40 0.46 0.79 3,526 CIBER 6.44 -1.15 0.38 0.44 367 Computer Associates 30.14 -1.02 1.98 2.11 17,369 Computer Task Group 5.49 -0.35 0.18 0.42 114 Digi International 8.95 -1.12 0.42 0.55 136 EXE Technologies 7.11 -0.12 0.19 0.34 322 KPMG Consulting 18.26 -1.52 0.91 1.39 2,877 Transaction Systems Architecture 12.01 -0.50* 0.47 0.61 439