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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Starduster who wrote (6961)12/8/1997 3:20:00 PM
From: Jack Zahran  Read Replies (2) of 31646
 
Sandy,

The reason why it isn't higher are a few:

- Although reporting record revenue, many will wait till the company reports net profits. That's why we can still consider ourselves as being on the ground floor. As you know, this requires great patience to wait from quarter to quarter for this to happen.

- The entire Y2K sector has recently suffered from skeptism due to a few Y2K companies not delivering the over-hyped profits they promised. That is why TPRO needs to show the money to differentiate itself from the rest of the sector. Many feel that 1998 will be a watershed year for Y2K companies and not coincidently February and May 1998 are very important earning reporting months for TPRO. Note that the Y2K earnings have happened quicker than TPRO initially expected and that is why we are looking forward to February as well as May.

- Many investors (Individuals and Institutions) will limit their investments in non-marginable securities. TPRO's NMS status is very important to open it up to the entire investment community. We are passed the three week minimum, so it could come at any time. I have reviewed the NMS requirements and TPRO definetly falls within the limits. I think they're a shoe-in. I hope TPRO is staying on top of NASD to move it along. Some feel that TPRO is waiting to make contract announcements after they get NMS status: Makes sense. I understand that they recently landed one contract for $8Mill in Y2K work. I figure they'll announce it when they get there NMS status.

- The company has been working very hard to bring it's books into clean and simple order. They basically have gone through a necessary transformation and their books are now only clearly reflecting their renewed condition. Many feel that once we get the Warrants out of the way, the books will be simple and clean; this will provide a great boost to investor confidence.

Finally, Sandie we must remember that we are pioneers in this stock and being out in the forefront can be lonely for a while. But when the rest of the settlers start coming, we already have purchased the land and water rights.

Take Care,
JZ
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