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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Money Mood who wrote (11851)	2/21/1998 8:06:00 PM
From: Zebra 365	Read Replies (2) \| Respond to of 31646

The SEC and Y2K Disclosure Viktor, you asked, <<What effect these Y2K disclosures should have on the individual stock prices and on the market as a whole - could you elaborate on this?>> Message 3162764 The whole SEC bulletin (modified Jan. 12, 1998) is at the above link on the research thread. I think this bulletin should be called the "Yardini Bulletin". I think that, if you read it, you will find that it is fairly clear and WILL require companies with any Y2K risk to disclose the risk and costs of remediation in their next 10Q. In fact, it requires an 8-K if those risks are really significant, "A company's Year 2000 costs or consequences may reach a level of importance that prompts it to consider filing a Form 8-K.". It even requires companies who don't know their Y2K risk to state so, "If a company has not made an assessment of its Year 2000 issues or has not determined whether it has material Year 2000 issues, the staff believes that disclosure of this known uncertainty is required." "The disclosure must be reasonably specific and meaningful, rather than standard boilerplate." What will this do to the market? Well, personally I'm expecting a correction similar to or worse than April, 1997. Taking a somewhat defensive posture in my investments. I don't know if this correction will totally be Y2K driven, but I really think that will be a major factor. Let's face it, Y2K is a major expenditure for many companies that is a total negative on the P&L statement, like taxes. No company is going to advance from this "investment." Why do you think they are dragging their feet? Now that they are forced to disclose this risk in the SEC filings, I think their shareholders will force them to take action. I applaud this move by the SEC, and not just because it will benefit my TAVA investment. This will stop companies from "playing chicken" with the Y2K deadline in the hopes that a cheaper solution will soon be found. Good question, I hope my answer makes sense. Zebra