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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Nimbus who wrote (10481)	3/29/1998 9:49:00 AM
From: Narotham Reddy	Read Replies (1) \| Respond to of 13949

Asian bourses lead fight against Millennium Bug Saturday March 28, 10:47 pm Eastern Time By Chris Johnson SINGAPORE, March 29 (Reuters) - Stock exchanges are leading the campaign to inoculate Asia against the Millennium Bug. Afraid the programming error will crash computers on January 1, 2000 and trigger technological heart attacks in financial markets around the region, bourses from Sydney to Manila are pressing companies to solve the problem. Many say this computer time bomb is so dangerous that firms have a duty to tell shareholders what progress they have made in reprogramming or replacing systems that have the problem. ''Investors have a right to know whether to buy shares in a particular company and if the company is capable of functioning in two years time when the Millennium Bug could go into action,'' said Howard Hsu, senior analyst in information technology at market research company International Data Corp in Hong Kong. Although it has been hitting the headlines for almost two years, experts say many firms have still not grasped the full significance of the bug and what it could do to their businesses. The problem stems from shortcuts taken by computer programmers in the 1970s and 1980s, who tried to save valuable computer memory by abbreviating dates to the last two digits. Many computers still use this two-digit formula and are in danger of crashing when they enter the next century because they will interpret the year 2000 as a meaningless 00. If computers are not reprogrammed, the consequences could be disastrous. Experts say the bug could shut down companies, jam communications, even freeze world trade, if it is not eradicated. With time short, stock exchanges across the Asia-Pacific are racing to draft rules to ensure their markets keep working. The toughest action has been taken in Sydney, where the Australian Stock Exchange (ASX) said last week it would suspend trading in the shares of listed companies if they did not disclose their exposure to the Millennium Bug June 30, 1998. ''It is a very serious problem. We have to find out the extent of this issue and how it affects listed companies,'' said ASX spokesman Robin Harris. Harris said the ASX's action was partly intended to find out the total cost of the problem and contain any explosion in litigation that the computer problem might lead to. Companies might have little claim against insurance companies if they were affected by the bug because they have had plenty of warning about the risk, insurance industry sources say. The response from exchanges elsewhere in Asia has been less draconian and has focused more on persuasion than threats. Listed companies are now required by the Stock Exchange of Hong Kong to disclose progress in dealing with the millennium issue in their results announcements. ''We have sent out letters to all listed companies asking them to disclose the progress in their reports - whether it is annual or interim,'' said Henry Law, director of corporate communications at the Stock Exchange of Hong Kong. ''It is the management's responsibility. We can only remind people to state the progress. If they don't do it, shareholders will ask why,'' he said. Law said more than half the exchange's computer system was ready to deal with the problem, or ''2000 compliant'': ''At the end of this year we should be able to complete all of the work and by then we will have a rehearsal with our members together with Hong Kong Clearing.'' Members of the Philippine Stock Exchange (PSE) have until December to address the problem, officials say. The PSE hopes to complete preparation of its own computer system by end-June. The Tokyo Stock Exchange has asked its member brokerages to take steps to ensure trading will be smooth from January 2000. Analysts say a mixture of carrot and stick will persuade most large firms to take the necessary measures, but some smaller firms may not act in time. But most argue the final decision on action should be left with the companies themselves. ''It is a very important issue and all companies must deal with it. But they should do so in their own time,'' said Lim Eng Hai, head of research at Singapore brokerage J.M. Sassoon. ''By the year 2000, some will have fallen behind on the schedule and they will be hit by the bug.''

To: Nimbus who wrote (10481)	3/29/1998 9:31:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 13949

Re: Best Buys Once the month is over and I've had a chance to read the year-end financials and analysts predictions for Q1, then I'll be in a better position to answer your question. Right now things are too turbulent with two days left before the filing deadline. The wires should be buzzing between now and then; watch them. However, barring something catastrophic that's being hidden from us, I think PTUS is a steal under 9. My guess is it will recover starting on 4/1 when the new quarter begins and funds buy back in. - Jeff