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 : TAVA Technologies (TAVA-NASDAQ)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Zebra 365 who wrote (6090)11/16/1997 6:08:00 PM
From: James Rembar  Read Replies (3) of 31646
 
I am truly impressed with the quality of this thread and the Topro research
thread and I thank you all for your contributions.

Zebra, you wrote:

"Divide up the following:
1) toolset sales as one division (software)
2) remediation work as another (new Y2K engineering business)
3) current base business work as another (base engineering and equip)"

I think this is a useful way to think about their business and helps us
to think about valuations for this company. When others have made revenue
projections, not enough thought has gone into what might be appropriate
p/e multiples.

Specifically, items 1 and 2 relate to Y2K business and may last more than the
2 years remaining since it is extremely unlikely that all remediation work
will be accomplished by then. But even if this work extends for 3 or 4 or 5
years, these are nonrecurring earnings and therefore should not be multiplied
by a p/e higher than ONE. To the extent that this work leads to developing
business relationships and other work, of course value is added. At this point
it is extremely difficult to even begin to estimate what this value might be.

To restate, nonrecurrent earnings should not be multiplied by a p/e ratio and
this should be factored into the efforts to develop valuation models.

Comments?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News