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


To: Kal who wrote (379)2/12/1998 4:14:00 PM
From: Hardware Heister  Read Replies (1) | Respond to of 1316
 
I'm only speculating, but I believe part of the reason Keane's earnings weren't higher stem from the cost of labor these days in I.S.

Keane runs ads constantly in my area (NYC, NJ, CT) and they appear to be actively hiring. The people they are bringing in are probably costing them a pretty penny, because no one is cheap these days.

On the other hand, the fact that they are hiring on a continuous basis suggests that business is very healthy, as was reflected in the revenue and earnings growth figures.

I personally think they are a top notch firm, a step above some of the other firms that people always mention in the same breath as Keane.

But I think the stock price reflects a lot of expectations over the coming year. The expectations for growth may well be met, but the hiring thing is most certainly constraining.



To: Kal who wrote (379)2/12/1998 6:01:00 PM
From: Mark T. Heath  Read Replies (1) | Respond to of 1316
 
I guess it could be contributed to that. To be honest, I'm a little surprised that's all it was. My first response when I saw the news this morning was "oh no". I appear to be in the minority on it though given that the volume today was light and the market is acting like the multiple is justified in light of today's earnings announcement (or so it would seem).