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Technology Stocks : C2i Solutions, Inc. (CTWO) -- Ignore unavailable to you. Want to Upgrade?

To: Josef Svejk who wrote (5)	2/26/1998 10:13:00 PM
From: Jeff Grossman	Read Replies (1) \| Respond to of 34

C2i is now up 44% from the offering price. Not bad for three days! Apparently, things are looking very good for the company. CTWO has the potential to trade much higher than this...

To: Josef Svejk who wrote (5)	3/16/1998 4:25:00 AM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 34

Someone sent me a newsletter with this in it: ========== Here's an interesting stock that is worth keeping an eye on. C2i Solutions (Nasdaq: CTWO, CTWOW) provides services to address the Year 2000 challenge and to transition legacy software applications. C2i went public on February 24, 1998 at $6.10 for one share of common stock and one warrant exercisable at $7.50. The company is currently in a quiet period, which means we probably won't see any press releases until the quiet period is over on March 23. In the weeks following the end of the quiet period, I would expect the company to start announcing any contracts that it has been awarded. This should generate significant interest in C2i stock and warrants. For those willing to take big risks, next week could be a good time to consider buying C2i - before any contracts are announced. For those who are more risk averse, you should consider waiting until the company starts to prove itself by announcing contracts. This is a risky stock any nobody should invest more money than they can afford to lose. There is no guarantee that C2i will actually win a significant number of contracts - it's only speculation at this point. (Be careful with the C2i warrants. Although the prospectus says they cannot be called within the first year after the IPO, some people seem to believe there is a way that they can be called. I'm still trying to get a definite answer.) Why is C2i worth a look? * With very few shares outstanding, it doesn't take much net income to generate large earnings per share. * C2i has already entered into an agreement with United Guaranty Corporation, a subsidiary of AIG, the global insurance giant with $27.7 Billion in sales for the last 12 months. * Experienced management. C2i was founded by a former president of NETCOM On-line Communication Services. Other members of management have significant experience with many well known companies. * Excellent board of directors with impressive backgrounds. Referral fees ranging from 2% to 4.5% give the directors the incentive to use their connections to generate business for C2i. * C2i is a relatively new company with a clean balance sheet, which hasn't had the time to collect any skeletons in its corporate closet. * The year 2000 problem is a hot topic, and it's only going to get hotter as we approach the year 2000. There is a research report on C2i at dirigoresearch.com which you can access if you sign up for a free trial. SEC filings are available at: sec.gov ========== My opinion is that this company right now is nothing more than a wing and a prayer. Their revenues of $89K are almost exactly the same as TPII, an identical company in that they, too, depend on licensing third party tools and their only Y2K experience is a couple of guys doing mid-level consulting. They trade at around .30, which, if we account for the difference in outstanding shares would make this a $1.50 stock. [BTW, the Dirigo Research web site says C2i is a bargain at $2-4, yet is has a low of 6; such attention to detail (gg)] Any agreement these guys have with a billion dollar company absolutely has to be a pilot. No company of that size would dare give its mission critical code to a bunch of consultants using rented code. I also expect C2i to announce some great sounding alliances, which, of course, will amount to little if any real work. Investors here should keep in mind that even if C2i get a pilot tomorrow, it will take months for them to get it remediated and then months more to test it. Anyone who follows this sector knows that even CSGI, the company with the fully-automated toolset that's been around for more than a year, even after all their pilots, still has a hard time getting paying contracts. Their revenues to date are negligible. I also think that the street is past the "its a $600B problem and all Y2K companies will get rich" stage and is now looking at the balance sheets to sort out the winners from the losers. Since there guys even say in their SEC filings that they don't plan to be profitable in '98-- I'd say this stock, although it may take a pop short-term with some great sounding press releases (pump and dump), medium-term, has nowhere to go but down. - Jeff