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Technology Stocks : 2000 Date-Change Problem: Scam, Hype, Hoax, Fraud -- Ignore unavailable to you. Want to Upgrade?

To: David Eddy who wrote (558)	4/7/1998 6:16:00 PM
From: Bill Ounce	Read Replies (2) \| Respond to of 1361

Exactly >>> The reality and seriousness of Y2K should be completely separate from stock market hype and grossly inflated stock prices.<<< The following factors must be hedged by those who play Y2K solution vendor stocks; otherwise expect to lose money... (1) Y2K may initiate a panic that crashes the market. Don't expect Y2K stocks to be immune to this. (2) Wages for people who do the fixes will skyrocket. This will divert rising revenues from profits to the workers. Don't think it will be easy for code-cranking shops to run up easy profits. Especially those with fixed rate contracts. (3) Threat of future lawsuits over introduced bugs may cause further drains on profits with unexpected insurance costs. (4) Y2K stocks are already high priced. Any disapointing numbers from any major Y2K player will likely will drive down the entire sector. This is all assuming that Y2K is a serious problem to the USA economy. The reality of Y2K should not be used to delude yourself that it should be easy to make money with Y2K stocks.