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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)
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To: Jim Wilke who wrote (6820)12/4/1997 9:45:00 AM
From: Jack Zahran  Read Replies (1) of 31646
 
Jim, the argument for purchasing a CD is very strong. When requesting a purchase like this, what reason could a manager give for declining. Plant managers take every risk by not doing an assessment. There is no risk to them to buy the CD and use the tools. For example, in the best case scenerio, a manger can go to his bosses and show them that he has verified the plants to be Y2K Compliant.

If a manufacturer has in-house engineers, they will be the first to request tools to help them take care of their compliance testing. The only tool available is TPRO's. If the in-house testing shows a great deal of Y2K issues, then management will have to decide on whether to delay in-house projects till after their staff resolve these issues or to outsource the work. The second option will be chosen by many plants. Besides the Y2K issue, firms like TPRO are experiencing a growth in their base business that is due to plants outsourcing their work. The Y2K issue is only accelarating the move to use outsourcing.

In 1995, it was predicted that the area of manufacturers outsourcing their work to companies such as TPRO would be a hot industry. TPRO had been taking steps to capitalize on this growing sector ever since Jenkins came into office. The fact is that TPRO is a fast growing company without Y2K. The Y2K business has now allowed them to grow even faster. All the profits from Y2K will only lead to further acretive acquisitions. The base business oppurtunities will only keep growing as more and more manufacturers move to outsourcing. TPRO will be in the best position to leverage it's size and accrueing plant expertise to dominate the business. They'll always be room for the small local SI firms, but TPRO is focusing on the 100+ employee plants.

The company has a tremendous opportunity. The CD is a shoe in. The market for ousourcing is only growing. The company has the cash and the expertise to make all this happen.
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