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

To: Tumbleweed who wrote (12375)	7/15/1998 9:13:00 PM
From: Jeffrey S. Mitchell	Respond to of 13949

I also expect a lot of insurers will get sued for trying to weasel out of Y2K related claims. This week's National Underwriter (an insurance trade magazine), has a story about this topic in the current issue. A few quotes: "The basic position of insurers is that Y2K remediation costs and direct damages are not covered by insurance," she [Emily Canelo, senior VP of Zurich Re] noted-- but other indirect losses could be caused by Y2K, and so insurers need to actively examine the problem. This means determining the Year 2000 risks presented by the policyholders and making decisions about any changes in coverage, she said. [stuff about possible ways insurance companies might get screwed] For insurers, heavy costs could be assessed through the litigation undoubtedly arising from the Y2K computer problems, according to Stephen Marcus, an attorney with Bigham Englar Jones & Houston in New York. He predicts three waves of litigation. "We are already seeing the first wave, involving litigation over compliance costs," he noted, referring to the at least six suits that have been filed against vendors. The second wave will be the lawsuits that result when specific systems fail and cause damages, he said. "The third wave of litigation will involve disputes over insurance coverage," he said. "Insureds will take a close look at their insurance and attempt to place their remediation costs, as well as their liability exposures, under traditional policies that may not have even contemplated applicability to Y2K problems." It is a long article and basically points out that "hundreds of billions of dollars are at stake". At some point it may be on-line at nuco.com. If you think the lawyers will prevail, then perhaps you can short the insurance companies. (g) - Jeff

To: Tumbleweed who wrote (12375)	7/15/1998 9:16:00 PM
From: Pendretti	Read Replies (2) \| Respond to of 13949

Did anyone ever looked at EGNS? Let me introduce myself. I am a portfolio manager in the Caribbean for a large Dutch bank. I talk a lot to different brokers every day. Two years ago one broker mentioned to me a stock named EGNS (it was 0.22 then). We bought in at that time and the stock has moved up nicely and is now at 1,84. This is not only a Y2K company, the core business is remediation of Cobol software. The company closed a deal with Data General at the end of the q2 which means DG is selling the products from EGNS to their customers. EGNS has the only product for the DG machines and there are about 3.300 initial clients located. Now, they won't sell to all the clients but 25% is very conservative. The products of EGNS sell between $ 18.000 and $ 32.000 and DG is already selling their products now. A very big market for EGNS is there in China and South Africa where there is a lot of COBOL (90% of the market). Today the company announced a JV in which they will own 51% and with expected revenues for the first 3-5 years of over $ 100 mln. for the JV. So this means $ 10 mln. a year for EGNS. Compare this with revenues of $ 1 mln. in the last years and you will see what this means (it's ten times as much). They will also go to South Africa this month or next month to close deals over there. Now, what is the big advantage of EGNS. They have products with very high margins, over 80%. So the profits from all this will be huge. The company has stated several times that revenues will grow this year with 400% and for the next year another 400% and they are right on track to make this happen. Now here is some other relevant information: - Fully diluted there are about 22 mln. shares outstanding. - All the bigger inside selling is not selling but exercising of options (read also the SI posts of lago on the EGNS thread). - Shares in the float will be about 13 mln. fully diluted. - The company is fully reporting for many years. - The company has no debt and has cash in the bank. - The target is to apply for nasdaq later this year. I am sure I forgot some other positive things but you will read more on the thread. If you want an investors package email Jacob Nguyen at Tedrow Communications Center: jacob@magicnet.net or call him at 800 777 8098. My personal target is $ 8 for the end of this year. If you have any questions, let me know. Rene.