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Technology Stocks : Data Dimensions -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (4006)	12/20/1997 2:17:00 PM
From: Hink	Respond to of 4571

Darrell; Another take on the the Y2K stocks. It (Y2K) is a problem, but not everyone is going to profit from it....and, yes, I'm one of the evil shorts. Hink Year 2000 Firms' 1996 Feast Turned Into Famine in 1997 By ANTHONY PALAZZO Dow Jones Newswires PASADENA, Calif. -- What a difference a year makes. At this time last year, Year 2000 stocks were on a rampage. Zitel Corp. led the charge, soaring 147% over more than a week to a high of $72.875 on Dec. 30, 1996, only to plummet after rumors proved false that hedge-fund titan George Soros had been amassing a stake. Chasing Zitel were TSR Inc., Data Dimensions Inc., Computer Horizons Inc. and other Year 2000 plays -- companies that are involved in solving the Year 2000 problem, or the inability of older computers to properly read dates after Jan. 1, 2000. This year, though, the Year 2000 stocks have lagged the overall market. Many are trading below their close of a year ago. While some expect the sector to heat up in 1998, others, citing this year's experience, are skeptical. Because many computer date fields have space for only two digits, they read 2000 as 00, and can't distinguish between that year and 1900 -- a problem that some fear could cause malfunctions in all sorts of electronic products. By late last year, the Year 2000 problem had broken into the national consciousness, and media reports were predicting everything from widespread bank shutdowns to elevators malfunctioning at the stroke of 2000, stranding New Year's revelers between floors. Alert investors started buying Year 2000 stocks early in 1996, and many of those stocks registered threefold to fivefold rises or more by late in the year. Although the Soros rumor was partially responsible for Zitel's run-up last December, there remained a strong sentiment among these investors that public interest in the Year 2000 issue would only increase in 1997, as the ramifications of the computer problem became more widely known. But that juicy scenario didn't materialize: Instead of soaring as the end of 1997 arrives, many Year 2000 stocks are struggling to live up to predictions. Zitel, which ended 1996 at $44.375, closed Friday at $11.25, up 75 cents. Among other Year 2000 players, Computer Horizons can be had for slightly less than its year-end 1996 price, TSR Inc. for about half, Data Dimensions for about a 42% discount. Viasoft, considered a bellwether of Year 2000 stocks, finished trading up $2.468 at $36.406 Friday, about nine points below its 1996 close. All are well off their 52-week highs. One exception is Keane Inc., a Boston software-services company that has seen its stock price more than double this year. The company said its established services business is beginning to benefit from cross-selling opportunities to Year 2000 customers. After a slow start, the federal government -- home to many computer applications that can't be replaced, such as missile-guidance systems -- is expected to open its coffers in 1998 and spend at least $3.9 billion to avert widespread government computer crashes. However, it may take drastic action to convince skeptics that investing in Year 2000 firms is a wise strategy -- especially in light of this year's disappointing results. Investors worry that little will happen until after 2000, when the computer malfunctions become evident. With that in mind, an increasing number of investors are screening their investments for any potential Year 2000 troubles among individual companies, rather than betting on the sector itself

To: Big Dog who wrote (4006)	12/20/1997 2:54:00 PM
From: Eric Klein	Read Replies (1) \| Respond to of 4571

Darrell, I think that y2k is a genuine problem. I just don't believe that DDIM will be able to make enough profit to justify their stock price. The initial y2k frenzy assumed that some company would come out with a "Silver Bullet" to solve the problem. No company has. DDIM's Ardes product is overpriced and has not generated much revenue, nor is it likely to. In the short term, DDIM has to make $.23 in this quarter. This is more than double last quarter's profits. I don't believe they'll be able to do it. If they don't make their numbers, they will get slammed. In the even shorter term, the market is not showing a great deal of strength. A stock like DDIM is tarnished, it's down more than 50% from it's high. A positive short term factor, though, is that many "investors" are holding waiting for a New Year's bounce. It may get the bounce, but look out come February when the New Year's hoopla dies down and DDIM must release their earnings numbers.