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Technology Stocks : CSGI ...READY FOR TAKE-OFF! -- Ignore unavailable to you. Want to Upgrade?

To: angel who wrote (1263)	11/19/1997 11:44:00 AM
From: Richard Dunaven	Read Replies (2) \| Respond to of 3391

Angel, thanks for your civil response. My previous comments were not just directed to you but to all on the board. Please don't take it personally. I'll try to answer your questions and offer my insight as follows: I do not believe the Reg D stock is comming out here. The stock is seeing some pressure and it can be for a number of reasons. This is the time of year when we see losses being taken to offset capital gains from other stocks. If you bought at 13 you might take losses here and then come back in after 30 days. It could also be from some of the original private placement stock. In any case it is not on big volume which is a positive. I look at it as a buying opportunity. This Co has one of the lowest cost structures and highest net margins of any Yr2k co out there. This industry is at a low right now but I believe that Q1 & Q2 98 will prove to be big for all the yr2K companies. CSGI can convert over a Bil lines of code in a yrs time with the present systems and employees. If they only convert 100 mil lines next yr, which I think is conservative, at a low price of .35 per line, again which is conservative, they will earn over approx $2 per share. By mid 98 many co's will be in a panic to get their conversions done and won't have the luxury of time to go to a manual consultant such as Keane unless they use an automated house. There are a lot of Co's who must have their conversions done by the end of 98 due to predating requirements such as drug and food Co's. Only 5% of the Co's have solved their Yr2k problem and 30% will shut down if they don't solve it by 12/31/99. In essence there is a lot of yr2k work yet to be released and I believe that CSGI has positioned themselves to be a major player when it happens and will do so at a very low cost. They have proven that there really is an automated solution for certain languages which I have yet to see from any of their competitors. I've seen contracts for test pilot projects buy some of the so called automated houses but I have yet to see them announce that they have completed one yet by running code in one day. It just hasn't happened and until it does I will stick with CSGI. If you know of a Co who not only makes this claim but has done it then please let me know. I would love to to take a look at it. CSGI is advertising in the WSJ as having a fully automated solution which has been proven. If they didn't have it then they would be opening themselves up to a tremendous liability problem. Everybody's investment strategy and tolerance for risk is different and I wish you luck with what ever investment decision you make. I hope this helps!! Ric D.