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Technology Stocks : Y2k : effects on non Y2k related stocks -- Ignore unavailable to you. Want to Upgrade?

To: Geoff who wrote (29)	7/25/1998 2:13:00 AM
From: John Mansfield	Read Replies (1) \| Respond to of 54

'From: Robert and Frances Egan <egan263@nospam_allowed.ix.netcom.com> vr 23:43 Subject: Re: First stock casualty due to y2k There's an important aspect to this story which makes it unique from all the others in this thread. Computer Associates is the first software company to report revenue loss directly attributable to Y2K. In other words, they lost business because of their customer's Y2K problems. This is the reason I mentioned Diebold. Look at the quarterly earnings reports coming out of the "techs" this month. Everyone in software and hardware took some kind of hit, most of them falling far short of analyst's expectations. To be sure, they're all blaming Asia, but Y2K is in there as well. CA was simply the first company to say so in a press release. Cheers Robert Egan Jo Anne Slaven wrote: > > D. Scott Secor - Millennial Infarction Mitigator wrote: > > > > Robert and Frances Egan wrote in message > > <35B7E9C1.F6C@nospam_allowed.ix.netcom.com>... > > >x-no-archive: yes > > > > > >A month ago Diebold, a manufacturer of ATM machines, announced the > > >layoff of 600 to 800 employees as a result of lagging sales. It seems > > >banks consider ATMs a luxury when weighed against the necessity of > > >staying in business. > > > What about Houghton-Mifflin, the dictionary software folks? They took a BIG > > hit (30%-ish) when their Y2K remediation expenses hit their quarterly > > reports. I think that this occurred last winter. > > And then there's Moore Corp. > > thestar.com > > "After posting a significant second-quarter loss, the world's largest > manufacturer of business forms and labels says it will slash 4,800 jobs, > or a quarter of its global work force." > > "Ed Tyler, president and chief executive, blamed the losses on lower > volumes, the high cost structure in the forms business (which generates > about 75 per cent of the company's $2.6 billion annual sales), seasonal > weakness, and the $15 million expense of handling the Year 2000 computer > problem." >

To: Geoff who wrote (29)	7/27/1998 4:18:00 AM
From: Ken Crounse	Read Replies (1) \| Respond to of 54

Geoff, Re: exercising, I was just trying to explain why the pricing of these options might appear strange; being of the 'European' variety. However, intuitively it seems like it could be more difficult to get a good price for such options. For instance if we'd bought the Dec99's slightly out-of-the money last week and the market plunges this week, it is possible that the price might not change much since most people might expect that the market will rebound by the way-future expiration date. Here time is not your friend it seems. I guess I should look more into how such options are priced. I like the general scheme of buying index puts now, reaping the rewards from Y2K market panic sometime in 1999, and investing into the sell off. It would be nice to target some particularly vulnerable companies though since a) return could be much better than the general market and b) LEAPS can be bought for JAN 2000 just in case that little bit of extra evidence is still needed by that date. Do you have any good ideas? Ken