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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Jim Wilke who wrote (3491)10/4/1997 4:58:00 AM
From: JDN   of 31646
 
Dear Jim: In my view, P/E , in the long run, is a reflection of growth, safety, predictability of earnings. By growth I dont mean just the Y2K phenomena but the Company's underlying base business. If the company can accumulate a significant pot of cash from this Y2K business (safety), move forward on its NATIONALIZATION of factory systems integration, and realize substantial growth in its core business through the nationalization AND new customer contacts thru Y2K, I should think that it would command a significant PE ratio. I look at Jenkins as sort of the Wayne Huzinga of the factory systems integration world. If it pans out as I hope, then this stock will become a core holding similar to INTC, SUNW, and others. If not it will be a quick buck. Time will tell. I will be as interested in the growth of their core business as I am in their CD sales. JDN
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