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

To: Bill Ounce who wrote (559)	4/7/1998 7:46:00 PM
From: David Eddy	Respond to of 1361

Bill - The reality of Y2K should not be used to delude yourself that it should be easy to make money with Y2K stocks. Strong agreement. - David

To: Bill Ounce who wrote (559)	4/8/1998 9:36:00 AM
From: Skeptic	Respond to of 1361

The reality of Y2K should not be used to delude yourself that it should be easy to make money with Y2K stocks. Amen. I have contended for some time that while Y2K is very real and very serious, it is of little investment value to the companies involved in the remediation since the earnings that result will surely not recur. The delusion that has propelled these stocks to their current levels is the extrapolation of current earnings growth rates well beyond 2000. As a result, people are willing to apply high multiples to these nonrecurring earnings. IMHO, this is absurd. However, since a lot of investors have apparently convinced themselves that this is possible, and because many of these companies will continue to show strong earnings growth for at least another year, it is very possible that these stocks will continue to climb. The real question is when does reality take hold? This year, next year, or sometime after 2000?