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

To: tech who wrote (337)	1/23/1998 4:38:00 PM
From: John Xu	Read Replies (2) \| Respond to of 1316

It's interesting to read couple of posts here on Clinton's state union speech. Clinton is better to start a war with Iraq than talking aobut Y2K in his speech :-) I still cannot figure out why KEA should go higher from here. It's prices/sales stood at 4.3 while EDS and CSC are both below 1.5. Suppose KEA's sales will double in next two years to 1.2 Billions, we still have a price/sales of 2.1. I do not understand why people wants to pay such a premium. Surely, KEA had great growth (80%) last year, but its sequential growth has already dropped down to 10% which traslates into a yearly growth of 40%. With a PE greater than 65, people are paying too much for the stocks. According to the report of Dept. of Labor, the number of CS major graduates is decreasing relative the IT opennings. Going foward, KEA will have troubles finding qualified programmers which will hurt its growth. Good lucks everybody, no matter long or short. John