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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Skeptic who wrote (6613)11/28/1997 10:04:00 AM
From: Gerald Underwood  Read Replies (5) of 31646
 
Skeptic,

With all due respect to your y2k bearish inclinations, I believe you would truely be better off in utilities, that is until they become deregulated or until 1999.

You are apparently not familiar with the efficient market theory.
If you were you could see that the market values y2k stocks very highly in spite of the insecurity you express about the y2k sector.

In other parts of the technology sector for instance, very high multiple averages are common in spite of the fact that any one of the stocks may become outdated or lose drastic market share in this highly volitile sector due to technology advances.
How do you know that 2 years hence that Intel will not lose market share to IBM or any one of several other chipmakers who may have breakthroughs. How do you know that Dell or Compaq will not lose market share to Network computers that are now selling under $1000? Toshiba is already discontinuing their home PC line Infinia to price competition from these lower price offerings.

There are no guarantees in any stock, especially with year 2000 rapidly approaching.

You have to have imagination and a certain amount of faith and luck in the launch of any new endeavor. Due to very explicit conference calls and a lot of research by members of this thread, we are in a position that is rare among stocks in the $6 range. You are lucky to get quarterly reports in most stocks of this price catagory.

One of the things I find rather interesting is that almost nobody invests in other $6.00 stocks for their outstanding balance sheets or for a 5 star rating in all the other various attributes that we look for in blue chip stock purchases. Yet we have belabored every last nuance in this company's conference call and financial statements to the utmost farthing. The balance sheets have been gone over with a fine tooth comb and have not been found wanting. Don't misunderstand me, this extended analysis is beneficial and helpful in accessing the past to date fundamentals, but considering that most stocks in this price range are development stage companies, what I really focus on is genuine and hopefully rapid capital gain appreciation POTENTIAL.

JMO.

Gerry
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