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

To: IVAN1 who wrote (13070)	10/15/1998 6:31:00 PM
From: Pendretti	Read Replies (1) \| Respond to of 13949

Look at the trend the Gartner Group noticed under managers. In 1997 managers expected that only 5% of the IT budget would be used for y2k. At the beginning of the year this percentage had increased to 29% and the latest number even shows that managers are expecting 44% of the IT to be dedicated to y2k. I personally believe it could create chaos over the world. And you cannot just fix it. I spoke to a ceo of a y2k, cobolspecialist company. He is now also seeing a turning point in the addressing of the problem. Now they want to sign contracts but they also want the job to be done immediatly. This is what is going to be a problem in the near future, companies realizing that something has to be done but there is no more time. So, they will start buying tools to fix it next year, but the testing period will then be to short. That is why it has to be done before the end of the year. What companies in the y2k do you think will profit from the growing awareness of y2k? I have not studied many companies. Of one company of which I know a lot, I have good confidence they will get good revenues from y2k for the next year and other work after y2k (y2k will bring the company through the door of the possible clients). The company is named Egan Systems (EGNS) and the stock has gone down because of the absence of news and the bad sentiment. There is news just around the corner and I expect that they will get CA as a partner to go after the y2k market in China. They have a JV over there and get 51% of the profits. They expect the JV to do 100 mln. in revenues for the next 3 years. Last year the company only had revenues of 1 mln., for this year I expect it to be around $ 4 mln and next year it could easily grow to $ 15-20 mln. The stock is at $ 0.78 and the company has positive cash flows, 900K in the bank and no debt, so the downside risk is limited. Did anyone of you ever look at this company. After the CA news I expect more releases in the next weeks regarding contracts. My personal feeling is that the stock could run up with good contract to $ 3 soon, and next year I think it could double again or even more. I am doing the Peter Lynch strategy with this one, buy and hold for a few years. I would appreciate your opinions. Rene.