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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: lbs who wrote (6100)11/16/1997 7:32:00 PM
From: Andrew H  Read Replies (2) of 31646
 
>>I do agree that the P/E should factor in the non-recurring nature of this work, but I think that a P/E of one is way too low. <<

Very good point. Perhaps some of the most exuberant bulls on this thread could speak to this concern. Has this issue been raised before on the thread? Many people are now concerned about the valuation of YK2 stocks, since the YK2 business will be over in 3 years at the most. Of course we know that TPRO is also rapidly growing its non-Yk2 business as well. And that it will use the non-recurring earnings for acquisitions, etc.

Can anyone suggest a model of how we might realistically value the expected TPRO windfall of the next two years? Certainly a PE of one is too low. But 30 seems too high. Any thoughts from those who have some expertise in such affairs?
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