Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Keane The leading y2k service provider -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (317)	1/23/1998 8:04:00 AM
From: tech	Read Replies (1) \| Respond to of 1316

Ron, you bring up some valid points regarding staffing, but KEA is by far the top Y2K play there is. I feel that the staffing issue is a big deal, not just for KEAN, but the industry as a whole. We are talking about an inelastic supply curve. No matter how much money companies try to throw around to get staff, it will NOT increase the supply, it will just make the existing supply more expensive. The real problem is going to be for companies who are trying to, or have already started in-house projects. I feel that once the flood gates open and the bulk of the work comes in, these companies are going to see their Y2k compliance costs go through the roof. Most of it will be a direct result of increased staffing costs. This is one reason I have invested in some of the Automated Conversion Houses. I feel that once the bulk of the work comes in, companies such as KEA and companies using toolsets to do in-house projects will have to use these conversion houses, due to the fact that they won't be able to find the resources. I currently hold approx. 3,000 shares of KEA and I feel that they will report way better than expected. I also think that they will, eventually, have to turn some conversion projects over to the "conversion houses" to deal with the lack of available resources. We haven't even seen the bulk of the work come in yet. Once the flood gates open (IMO. Q2 to Q3 of 1998) we will start to see the true magnitude of the staffing problems and of the y2k problem in general.

To: Hawkmoon who wrote (317)	1/23/1998 9:54:00 AM
From: Mark T. Heath	Read Replies (2) \| Respond to of 1316

You sure threw some cold water on the party. Ok, here are my thoughts. I don't believe that Keane is overvalued relative to its growth potentinal. I believe Keane is a company that will be in business on January 2, 2000. I don't think some of the Y2k plays have the ability to do much after the bomb goes off. Keane, although best known now for the Y2k thing, is more than this and I'm sure you are aware of that. If the earnings expansion continues, the valuation is justified. I'm concerned now. You were the leading cheerleader here. Now your sounding pessimistic. I hope you are just getting the butterflies over the next earnings report. Keane is so quiet in the PR side of business. You just don't hear alot and they never release financial info on the contracts. So, to a degree, I understand the nervousness. But I think you are thinking more along the lines of a fundamental valuation on the company, not an expectation of the company. Having read your posts, you seem to have a good handle on the technical issue at play in the Y2K problem. I'm curious to hear why you want to reallocate your Y2k investment portfolio.