SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Trading TAVA
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Skeptic who wrote (153)2/23/1998 3:23:00 PM
From: Jack Zahran   of 655
 
Perhaps their analyst is naive and short-sighted also?

It's my opinion that analysts who believe a P/E of 1 should be figured in for Y2K work have not spent the time to truly understand the nature of TAVA's work. Most of their contracts can be considered one time. For example, if a regional bottler asks them to set up their BevOne product at their single plant, what are the chances that that client will have them re-install BevOne again in the same plant. Do we consider this one time revenue and allow for a P/E of only one. Do you see were I am coming from?

The whole nature of their business is contract oriented with fixed deliverables. The next contract with that client will have different deliverables on it. But the important thing is that client is now a TAVA client and TAVA will have the best chance to land the next contract. The bigger the client, the more different contracts there will be. That's why TAVA's Y2K contracts are better in many respects to their regular core work. I would go as far as say that TAVA's Y2K contracts deserve a higher raitng than their normal core contracts because of the type of client. Surely a BMY, Unilever, GM, Merck, etc client will generate more work than the single plant clients of the past.

Thats why I think that analysts are being short-sighted. They aren't looking at the bigger sales picture. TAVA is adding multi-billion corporations to its client list. Y2K contracts are making this possible. The value of Y2K contracts to TAVA's core is immense.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News