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Technology Stocks : CBSI-complete bus. solutions. new y2k play! -- Ignore unavailable to you. Want to Upgrade?

To: av ram who wrote (456)	12/6/1998 10:09:00 PM
From: av ram	Respond to of 506

Sorry if this has been posted earlier but here is CREDIT SUISSE FIRST BOSTON report that was issued recently. I liked the second para most (bolded). "CREDIT SUISSE FIRST BOSTON CORPORATION Equity Research-Americas Industry: Information Technology Services STRONG BUY Complete Business Solutions (CBSI) Summary * Research indicates an accelerating shift toward ESPs within the Fortune 2000 over the next five years. Own companies with a full service offering and a strong franchise customer base. CBSI generates 80% of revs from existing customers. * CBSI currently generates less than 12% of its revenues from traditional low margin contract programming business, down from 25% last year. Shift should generate higher gross margins, better retention, and ultimately higher valuation. * CBSI generates 80% of its revenues from existing customers, providing a full life cycle of services. Currently, CBSI has 60 clients with contracts greater than $1M generating $187M in annual revs vs 45 clients generating $130M last year. * CBSI utilizes two offshore development centers and several training facilities to reduce project cycle times and address talent short markets. Offices in India generate 50+% G/M and 20+% O/M, twice those of the U.S. * CLMT acquisition tracking ahead of expectations. Revenues up 4.5% sequentially, O/M up 300 B.P. to 11% and attrition rates declining. * New valuation methodology indicates benchmark ESP's should trade at nearly a 1:1 correlation to their gross margins, similar to S&P 400. Given CBSI's established franchise base and cross-sell opportunity, we apply a 10% premium arriving at a $41 six-month price target (1.1 x 34% x $1.10). Upgrading CBSI to a Strong Buy from a Buy."

To: av ram who wrote (456)	12/23/1998 12:11:00 AM
From: Ron Kline	Read Replies (1) \| Respond to of 506

It will be interesting to see how CBSI trades in the $33 level. This is the 100 day moving average and it may cause some resistance. I'm amazed at how orderly this stock is trading. Normally it really flies up and then down. The action is more controlled but seems more real in terms of sticking. I did sell the shares I bought at higher prices but am keeping my initial investment. I think once earnings come out the stock should pick up steam. It's really undervalued IMO. Ron