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

To: Jeffrey S. Mitchell who wrote (12458)	7/23/1998 2:38:00 AM
From: P. Ramamoorthy	Respond to of 13949

y2k sector sold off - possible interest rate hike after Greenspan's report, earnings shortfall jitters (HP, Motorola, weak PC sales ), CA (Computer Associates) earnings problem, etc. Abby Cohen allows an interest rate hike and a possible increase in inflation in predicting S&P of 1250 CONSERVATIVELY by the 1999 summer. However, we see more statements to the effect that companies are dragging their feet (CMND, SEEC, KEA, etc.). US govt. just now realized their hourly rates for programmers were too low (almost 50% of the market rate). Even Clinton's press release did not boost the sector. In the midst of all this confusion and nervousness, has anyone noticed the quiet evolution of an IT outsourcing industry as stated in the following release by MAST? biz.yahoo.com >> INTERVIEW-Mastech sees $1 bln in revenues PITTSBURGH, July 21 (Reuters) - Mastech Corp will combine its rapid internal growth rate with global acquisitions to reach $1 billion in revenues over the next three years and boost its ranking among players in the information technology services industry, Sunil Wadhwani, Mastech's chairman, said Tuesday. ''Our internal growth has been very strong and it's getting stronger,'' Wadhwani told Reuters in an interview. ''We're going to supplement that with strategic acquisitions. ''We want to become a billion dollar company. We want to be a key player in the global information technology services industry.'' Since going public in December 1996 at $15 per share, Mastech's revenues have more than doubled. Revenues in 1997 were $196 million, 58 percent higher than 1996. Shares were down 1-3/16 to 26-3/16 at midday on Nasdaq. Mastech, ranked as one of the top 20 information technology services companies in terms of revenues, has been growing at four times the industry average, largely because it has been aggressive at international expansion. The company was founded in Pittsburgh in 1986 by two friends, Wadhwani and Ashok Trivedi, who serves as co-chairman and president. Mastech now boasts 5,000 employees and operates in eight countries, providing services including Year 2000 remediation, Internet/intranet services, client-server design and development, and applications maintenance outsourcing. Analysts are projecting Mastech's revenues to reach $330 million to $340 million this year. Those projections include the company's recently announced acquisition of Canada's Quantum Information Resources, which will add to Mastech's revenues for the balance of the year. << y2k earnings fluctuate this year as the contracts are completed and revenues are booked. Prices rise and fall like yo-yo. However, well-managed, well-capitalized y2k companies may be good bets for the future IT outsourcing industry when the programmers hourly rates will not be under pressure after year 2000 and consequently result in better margins, and possibly earnings improvements after year 2000. Just an opinion. Ram

To: Jeffrey S. Mitchell who wrote (12458)	7/23/1998 10:58:00 AM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 13949

I will not argue with your logic. I personally believe that CLCK is a fine company that is simply under followed. That's why they paid Westergaard to help raise their profile but every investment has it's risks. It is, as I said an OTC BB company, not a blue chip on the NYSE. I do believe Columbia Capital has a bright future. I believe they will move off the OTC BB soon, but I am not capable of forecasting the future. That's why I provided readers with phone numbers to complete their own due diligence. Regards, Jeff