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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Tony Battaglia who wrote (20918)7/23/1998 6:34:00 PM
From: John Howell   of 31646
 
Well put Tony! I find it both sad and amusing that people invest so much emotion in this stock. No matter how many people sell the stock short, at some point in the future the stock will achieve equilibrium based on whether they can earn money. Shortsellers have no long term effect on the price.

I notice a lot of similarities in the TAVA thread and the ZITL thread. The longs tend to view the shorts from an emotional perspective. The company says the earnings are "just around the corner". The stock slowly but surely grinds downward. The people on the wrong side of the stock go to great lengths to rationalize why they are still on the right side of the stock and that everything is going to turn out great if only........

I'm short TAVA (again) for several reasons. The main reason has nothing to do with TAVA's ability to get business. They might have the greatest technology, technicians, engineers, and managers on earth. The bottom line is that their books look like shit (fact), and their management likes to tapdance around the truth of exactly how leveraged they are (fact). Considering their current problems, they just can't grow enough in a year and 5 months to justify their market cap (my opinion).
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