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Technology Stocks : The Learning Company (TLC) -- Ignore unavailable to you. Want to Upgrade?

To: Greg R who wrote (5623)	9/4/1998 10:55:00 AM
From: Trader Dave	Read Replies (1) \| Respond to of 6318

TLC doesn't really have y2k exposure in any direction. Perhaps some of their utility apps have a date function and might need a minor upgrade. Many MSFT operating system products have issues, but TLC won't really benefit from any changes there. A few of the bears are trying to call a collapse in consumer spending. I generally see that as part of their continuing M.O. Anyone that's done any serious study will find that a decline in the markets is rarely a direct cause of an economic decline. IMO, If you want to bet on the impact of a recession, there are better places to short stocks. Tightened spending might drive more people towards sub $500 pc's. Perhaps software purchasing might shift to lower priced products, but TLC's asp's are very low and educationally oriented applications in the $19 to $30 range might get more favorable attention as opposed to the purchase of $40 to $70 games. But I doubt that spending is going to tighten that much. However, with wildly declining PC prices, it might encourage parents to spend more on applications. I would feel pretty good if I went in with a $1200 budget for a new pc and I ended up spending $700. "Gee, my daughter loves Madeline, my son won't shut up about Rugrats and they use Reader Rabbit and Oregon Trails in the school. I guess I'll pick up a few of these titles." TD