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

To: Shane Stump who wrote (1716)	12/24/1997 2:58:00 PM
From: tech	Respond to of 3391

hane, it is very easy to understand. This company has a burn rate of only $4 million a year They have done one of the only, if not the only, year 2000 conversion that was successfully completed and tested. > The Millennium conversion project. See how many companies you can find that have announced the start, successful completion, and successful testing of a year 2000 project. ConSyGen signed a 3 million line migration / year 2000 project with LSI, a subsidiary of Merril Lynch. This contract shows how CSGI can perform migration and a year 2000 conversion at the same time. ConSyGen has also done two pilot projects for Motorola and I am anticipating the testing results to come out soon. The alliance partners are: AGISS- Canadian based and only one of 10 companies on the of Canadian Gov. list to be awarded Gov. work. Most recently Agiss was awarded a assessment project for the Canadian Gov. that could lead to a potential $10 million contract and they are also doing an assessment for 3M in N.C. AGISS has exclusive rights to the ConSyGen toolset in Canada. Agiss wraps their services around CSGI's toolset. SCBI - Has many fortune 100 and 500 clients. They also wrap their services around ConSyGen's toolset. I expect SCBI to provide lots of work for ConSyGen. Strategia - Although they have not been able to meet up to expectations, they should start to get more work as we move into Q1 and Q2 of 1998. CSGI is currently working on a 1 million line gov. contract for them. Millennium - CSGI completed and Millennium tested one of the first, if not the first, ever automated conversion that was successfully finished and successfully tested. Millennium should provide lots of work for CSGI in the H.P. environment. CHASE One of the leading value added companies in Europe. Chase recently sold its position in a joint venture with ALYD and has now decided to go with ConSyGen. Chase should already have clients that are ready to deliver code for conversion. The Chase and CSGI team should do very well in Europe. CSGI has done approx. 14 successful pilot projects for these various partners and their own clients. We should see some of these partners and clients come back with the full projects in Q1 and Q2 of 1998 I also expect more alliance partners to be made as we move into the Q2 of 1998. As programmers salaries go higher it will not be cost effective for companies to try to do the work in-house. These companies who are using tools such as PTUS, SEEC, VIAS, will have to trun to the conversion houses to have code converted. At $.30 avg. price per line of code for ALL OF 1998 CSGI would only have to convert 50 million lines of code to bring in about $15 Million in revenues. [ 50 million lines x $.30 per line] At $15 million in revenues minus the approx. $4 million in expenses we get net revenues of approx. $11 million CSGI has about 17 million shares outstanding, so that would give them a eps of approx. $.64 per share. [ $11 million / 17 million shares] a multiple of x 30 would give them a stock price of $19.00+ a multiple of x 40 would give them a stock price of $25.00+ etc. etc. ... check to see what the avg. multiple is in this sector. Note* $.30 per line avg. for all of 1998 is a pathetically low estimate. As you well know once the flood gates open the price per line will shoot up dramatically. The 50 million lines is also a ridiculously low estimate. I have my reasons for investing in CSGI and most of it has to do with fundamentals and a clear understanding of what will happen once the flood gates open and a few projects are announced. I currently own 7,000 shares of CSGI and will add at least 3,000 more, possibly as soon as Friday of this week. Since I have traded CSGI, I have a rather low avg. of approx. $6.25 I would like to get my avg. under $6.00 as we move into January. If you want to look into CSGI, then go for it, if not that is fine too. I have done enough due diligence on them to know that I will make serious money once a few announcements are made. If you wish to call the company their number can be found on their web page. consygen.com what ever you do, I would still look to invest in the year 2000 sector before the flood gates open. I also own KEA and I consider it one of my top holdings for 1998. I think KEA will easily hit $50 by Q3.