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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Skeptic who wrote (6613)11/28/1997 10:50:00 AM
From: Jack Zahran  Read Replies (1) of 31646
 
What in the world are you talking about? This is a technology company. How many companies in this sector have a sure life beyond a year or two. Your asking all the wrong questions. The street runs with blood of many software companies that could not create a vision beyond that one product that launched their success.

In TPRO's case, we are talkig about quarter after quarter of record revenues on their base business alone. What is their base business: Services, not software. The Y2K business is a cash windfall that will be huge for two years and promises to extend for many more years beyond Y2K with the right vision. Two years in this business are two lifetimes.

If you ever worked in the Services end, you know that one contract usually leads to another with the same company. If the management gets used to working with you and they like you, then they'll keep going to you as their service provider. On top of that, TPRO wisely limits their hardware sales margin to 8-10%. That means that companies will continue to buy from them and use them to integrate new products. As they grow, so will their buying power and their margin.

Do they have other successfull software products? Yes, indeed, their BevOne product is accounting for some big sales this quarter alone. This company, like any other technology company, needs to be analyzed from Quarter to Quarter and with TPRO, they've shown that they have a vision and that they can follow through on it.
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