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Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?


To: NickSE who wrote (5191)3/31/1999 11:28:00 PM
From: Cheeky Kid  Respond to of 9818
 
Here are my predictions:

On or around April 1, 1999 a computer will crash, losing valuable data that was not backed up.

On or around April 1, 1999 a computer will be infected with a virus, they will attempt to remove the virus and cause more damage than the virus would have caused.

On or around April 1, 1999 a computer will lock up during an important trade, resulting in the loss of money.

On or around April 1, 1999 a computer will be stolen resulting in months of data lost.

On or around April 1, 1999 a computer will have a hardware failure and warranty will cover the repairs, but not the down time with no computer.

On or around April 1, 1999 Y2K doomers will be posting every little Y2K bug reported in the media.



To: NickSE who wrote (5191)3/31/1999 11:36:00 PM
From: NickSE  Respond to of 9818
 
PANIC IN THE YEAR ZERO
A real April Fool's Day
New Year's eve is but one problem among many

"The first of April is the day we remember what we are the other 364 days of the year." -- American humorist Mark Twain.

FALKLAND, BC -- On Thursday, the world's first real April Fool's Day could become a reality. Undoubtedly, the jokes will be flying, but it will also mark the second signpost on the road to Y2K disasters.

In 16th-century France, the start of the New Year was observed on April 1 and it was celebrated much the same way as it is today with dancing and partying and playing tricks on both friends and strangers. The butt of the jokes were called April Fools. In 1561, Pope Gregory introduced a new calendar for the Christian world and the New Year fell on January 1st.

According to Y2K experts, such as Loren Jacobs of Southfield, MI, there are nine signposts, starting on Jan. 1, 1999 when infrastructure providers and businesses started testing their systems. No major problems have been reported, however, the real test comes Thursday.

That's when Canada and New York State begin their fiscal year that will, of course, include dates beyond Year 2000. As a result, planning systems, especially budgets that haven't been repaired will fail as they attempt to process Y2K dates. With New York City being the world's media capital, such tabs as the New York Daily News, will be yelling: "Horror! Disaster!"

"I expect the stock market to react and begin a downward spiral," explained Jacobs, adding, "and the number of Y2K optimists will continue to dwindle."

SIGNPOST #1: January 1, 1999.

SIGNPOST #2: April 1, 1999.

SIGNPOST #3: July 1, 1999 -- The Canada and New York problems from April Fool's Day will continue to spread around the globe and, particularly in 45 U.S. states that will mark their fiscal years. The Y2K chaos will begin to start taking a grip.

"We will see the public begin to panic -- particularly where there has not been strong local leadership," Jacobs said.

SIGNPOST #4: August 22, 1999. On this date, the Global Positioning Satellite (GPS) technology will fail in receivers that are not upgraded or replaced. The GPS system consists of 24 satellites that transmit signals to earth, which are in turn picked up by electronic receivers to determine a vehicle's exact location and velocity. They are installed in both military and civilian vehicles and devices, including fighters, bombers, commercial and private airplanes, helicopters, trains, ships, submarines, tanks, jeeps, missiles and other "smart" weapons, police cars and ambulances and some newer-model cars.

SIGNPOST #5: September 9, 1999. That's when many computers will come face to face with the infamous "99" problem. For decades, programmers designated the end of a file or the termination of a program by entering a series of four nines in a row (i.e., "9999") in a date field.

SIGNPOST #6: October 1, 1999. U.S. federal government begins its fiscal year. Computer systems operated by the U.S. Defense, Transportation, Treasury, and Medicare Departments, among others, will begin malfunctioning. All the smoke and mirrors will be gone. The government -- and the administration -- will be forced to admit the truth. There will be no place to hide. The naked truth will be evident to all. According to estimates by the U.S. House Subcommittee on Government Information Management and Technology, 13 out of 24 key federal government agencies will not make the deadline.

SIGNPOST #7: January 1, 2000. All non-compliant computer systems will fail or generate corrupt data, propagating it across systems and bringing down many computers that are compliant. The world will watch with anticipation as the systems fail one time zone at a time.

"How big will it be?" Jacobs asked. "No one really knows. It depends on how many systems are repaired between now and Jan. 1, 2000. Perhaps more importantly, it also depends on what kind of contingency plans we have in place in order to mitigate the damage."

SIGNPOST #8: January 4, 2000. The first business day of the New Year begins. Many businesses, utility companies, and government agencies will not open -- many will not be able to open. Many that do open will be swamped with customer complaints. Chaos and pandemonium will reign.

SIGNPOST#9: February 29, 2000. Leap year has much more meaning on this date. Most people assume that every fourth year is a leap year. However, every fourth turn-of-the-century is a leap year, too. The year 1900 was not a leap year; the year 2000 is. Therefore, if the computer doesn't account for the fact that 2000 will, in fact, have a February 29, then all kinds of calculations will be off, including billing cycles. Unfortunately, many programmers were unaware of this rule, and their programs will stumble over this date, increasing the chaos.

Jacobs, who explained he doesn't speculate about the future, nevertheless, believes the Y2K problems are reason for pessimism in the future with supplies becoming scarcer and prices hitting the ceiling.

He also believes there'll be no last-minute silver bullet -- a magical solution.

"The mythology of the silver bullet is an appealing one," emphasized Jacobs, adding, "It is the main hope of those who believe that 'this problem will be fixed,' but it is not realistic.

"There are 500 computer languages. Many of them are no longer understood since the programmers are either retired or dead. Often several languages are used in one application program. Those containing multiple languages are even harder to fix. There is no one program to fix it. Faith in the silver bullet can ruin families and organizations.

"They delay taking steps to deal with Y2K in faith that a silver bullet will be discovered."

Sources: Y2K Net sites, Loren Jacobs.

worldnetdaily.com



To: NickSE who wrote (5191)4/1/1999 10:33:00 AM
From: C.K. Houston  Read Replies (1) | Respond to of 9818
 
RE: APRIL 1 - FISCAL YEARS & Y2K

Actually I don't think we'll hear about many immediate problems. I think we'll be seeing a situation more like what happened with Oxford healthcare, where corrupted information was interpreted as real/actual for many, many months ... until things finally blew up.
=====================================================

COMPUTER CRISIS: OXFORD HEALTH PLANS, INC. (Nasdaq: OXHP)
For over a year ('96 & '97), each quarter, Oxford Health Plans had been reporting ever INCREASING earnings and revenue - when in fact they were LOSING money, but were unaware just how much, because of computer software problems. Stock plummetted. Here's what stockholders saw:

3rd Qtr 1996 net earnings rose 77% on revenue increase of 69% ...

1st Qtr 1997 net earnings rose 86% on revenue increase of 50% ...
"Company's balance sheet continues to show higher levels of premiums receivable resulting from delays in billing associated with the conversion of certain of the Company's operations to a new computer system. Medical costs payable continue to reflect delays in claims payments associated with this system conversion ..."

2nd Qtr 1997 net earnings rose 66% on revenue increase of 46% ...

THEN ...

3rd Qtr 1997 NET LOSS $78.2 MILLION, or 99 cents per share ...
"Third quarter results reflect accounts receivable write-offs due to clean-ups of delayed group bills and terminations of non-paying individual and group customers. Additions were also made to accounts receivable reserves" ... "These adjustments are a consequence of information recently learned as a result of reviewing and reconciling previously delayed premium bills."
===========================================================

BEHIND OXFORD'S BILLING NIGHTMARE
Abstracted from Business Week 11/17/97

Oxford Health Plans Inc has suffered a $78 mil loss in 3rd-quarter 1997, and has reduced its profits prediction for 1998 by 25%. A computer system that has been inadequate since about 1992 apparently is at the root of the problem. A five-year, $20 mil/year program to replace the old system still has not been completed.

This forced Oxford into the habit of sending money to healthcare providers without really knowing what was owed, promising to rectify accounts when the computer caught up. But when all the claims were finally added up, they totaled far more than Oxford had anticipated.

Bills for premiums due were sent out late. But by the time the bills were sent out, many subscribers had quit Oxford, and the bills were thus uncollectable, costing Oxford some $42 mil. Thus Oxford was faced with higher bills and lower revenues, forcing the dismal third-quarter report. Oxford was getting claims totaling about 85% of its premiums, although it thought the medical-loss ratio was closer to 80%. This cost another $51.9 mil.

At least 12 law firms have now filed class action suits against Oxford for misleading investors by continually saying that the problems were past. A sale of stock by chairman Stephen F Wiggins and other officers in 8/97 indicates that management knew that the company's problems were severe, according to the lawsuits. Claims payments are still not caught up. Some providers are being paid interest on overdue accounts. Meanwhile, Oxford still is using the computer system it wanted to replace 5 years ago, but only for some of its operations ...
hoovers.transium.com

Taken from one of many lawsuits ...
The complaint alleges that defendants violated the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5) by, among other things, misrepresenting and/or omitting material information in a manner which concealed the adverse impact of a COMPUTER CRISIS which arose from changes made in the company's computer system in September of 1996 on: the ability of Oxford to collect on its accounts receivable; membership enrollment; and expenses. The complaint also alleges that certain of the defendents disposed of substantial quantities of Oxford common stock during the class period while the price of Oxford common stock was artificially inflated by the materially false and misleading statements alleged.
defrauded.com

I was in Washington D.C. last year (at airport coffee shop), when I ran across a fascinating article that detailed the entire story in chronological order - 2 full pages. I can't remember if it was Wall Street Journal or Washington Post. I was hoping to find it and post a link here, but don't have time to search today cause I have to spend all day with contractors.

What amazed me, when I read the article, was how long the company was aware of the problem. That they knowingly were working with inaccurate data. And, their attempts at various "work-arounds". Which obviously, and ultimately, didn't work very well.

This is what I see as a likely scenario for many companies and government agencies, who are not fully Y2K compliant, going into a 2000 fiscal year.

Cheryl