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

To: Rick Voteau who wrote (1593)	12/15/1997 10:50:00 PM
From: tech	Read Replies (1) \| Respond to of 3391

Rick, Budgeting and Spending are two different issues. The marketplace, in general, is in "show me the money mode" while most of the Y2K stocks are just counting the "potential" for money now. Those of us who have a beat on the Y2k scene (I hope) know that most of the companies and gov. agencies have been budgeting at the end of this year to start spending Q1 and Q2 of 1998. The market place has been hit with so many numbers regarding the Y2K problem, $60 Billion ... $600 Billion .... $1 trillion, etc.. that what is another $100 million here or there ? Until the time the revenues start to flow into the balance sheets of the y2k companies, the market place, as a whole, will not realize the what is going on. Right now the main question people ask is "how much exposure do you have in Asia?" I guarantee you by Q3 of 1998 the Y2K problem is going to make this "Asian Contagion" look like nothing. At that point the number one question is going to be "How much exposure do you have to the Year 2000 problem?" You are already starting to see companies such as Cisco warn about y2k expenditures. Keep a close eye on what will happen in Q1 and Q2. I personally feel that some of these tech stocks are going to be in big trouble. Including many of the Fortune 500. Not only will they have to cut their revenue estimates because of the Asia problem and the overall slowdown in the economy (that is already being projected for 1998),but they also have to allocate lots of money to fixing their year 2000 problem. Expect huge earnings disappointments and vast downgrades. The bigger their exposure to the Y2K, the harder the hit will be. WHERE WILL THIS MONEY GO ? You guessed it!, into the pockets of the Y2K companies. The Year 2000 sector will outperform all other sectors in the next two years. WHY ? Because almost every sector you look at will have some kind of exposure to the year 2000 problem. Think about it. Banks, Airlines, Power plants, Oil drilling companies, Technology companies, Hospitals, Manufactures, etc... etc... etc. NO ONE IS SAFE. By Q3 1998 my portfolio will contain 90% year 2000 companies and any other company I invest in, I will make sure they have addressed their year 2000 problem.