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Technology Stocks : Keane The leading y2k service provider -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (1158)	4/26/1999 3:37:00 PM
From: freeus	Read Replies (2) \| Respond to of 1316

rebearish case Well I bought some at 22 5/8 but here's part of a bearish case. The trend is your friend. From a T.A. point of view KEA has a HORRIBLE chart. It has been out of favor and going steadily down for a long time---close to 9 months I think. That is not good because if Wall St perceives that a company is not good the stock will not perform. Period. People were telling me to get into KEANE in the 30's. I'm mighty glad I didnt. I felt that in the low 20's the downside was very limited. In addition, many investors perceive KEA as "year 2000 stock" which, since we are getting closer and closer to the ACTUAL year 2000, is not good. So T.A. (and today is good so far but we'll see) and psychological indicators are not good for Keane. Fundamentally, it is a strong company I believe. Thats the bearish case as I see it. Freeus

To: Sun Tzu who wrote (1158)	4/27/1999 1:42:00 AM
From: Mark Marcellus	Read Replies (2) \| Respond to of 1316

I am very interested to hear the bearish case I bought Keane a couple of weeks ago so I'm not sure I could put forward a bearish case, but I do have a couple of concerns. First, before Y2K began in earnest, profit margins hovered around 5%. In 1997 it went up to 7%, and it's been double digits ever since. As the Y2K business winds down, I will be watching very closely to see how this affects the margins. Second, the founder and CEO is 67 years old. He also has two sons in upper management. As far as I can tell, the company hasn't said much about succession plans. One person claiming to be a member of Keane management posted on line that John Keane is not planning to retire for at least 10 years and is in excellent health. Be that as it may, excellent companies have been known to fail due to succession problems, or when a founder has stayed on too long. Those are the only significant negatives I can come up with. I don't think either is serious enough to discourage one from investing in the company, especially at these prices. FWIW, Mark