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Technology Stocks : INFORMATION ANALYSIS (IAIC) - YEAR 2000 Date Remediation -- Ignore unavailable to you. Want to Upgrade?

To: Matthew F. Kern who wrote (1366)	3/30/1998 11:28:00 AM
From: RikRichter	Read Replies (1) \| Respond to of 2011

Matt, Your analysis sure looks conservative to me. ;-) If your $3.00 EPS forecast is correct and one applies a market P/E ratio of about 25, IAIC's stock price has significant upside potential from the current level. Last Friday's news release about their expansion of facilities and LOC capacity and significant additional hiring of programmers to meet expected demand for UNICAST/2000 bodes well for your estimate. OTOH, look at another Y2K tool vendor PTUS today which is CUTTING its workforce by 35 employees and projects a loss to breakeven for the first quarter of 1998. At this point, IAIC and PTUS are painting two different pictures. PTUS, however, concentrates on COBOL fixes. I have always felt that IAIC's "ace -in-the-hole" is its very strong alliance with Computer Associates and its preferred Y2K fix status for CA's fourth generation language database management products. Bring on CA-WORLD '97 (April 25th in New Orleans)!!! Regards. Elliot

To: Matthew F. Kern who wrote (1366)	3/30/1998 8:06:00 PM
From: Sid Turtlman	Read Replies (2) \| Respond to of 2011

Matthew: Is your $3.00 estimate for 1998 or 1999? What would you guess the ratio of eps for 2000 to 1999 would be? Wouldn't it be considerably under 1.0? After all, after 1/1/00 any projects would be mopping up operations, rather than top dollar we-gotta-get-it-done-now type things. By then, all the extra capacity built up by the various competitors to meet the 1/1/00 deadline would be chasing after the mopping up jobs, I would think, lowering pricing and margins on that business. In fact, as the more far sighted companies finish up their y2k projects in the next year, I would think that the price per loc would start dropping, as that extra capacity comes into the market, even before 1/1/00. If your $3.00 estimate is for 1999 and then earnings plummet, the stock is no bargain here. OTOH, if the $3.00 is for 1998 and $5.00 or something is on tap for 1999, there may still be some upside left. What am I missing?