SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : TAVA Technologies (TAVA-NASDAQ)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jack Zahran who wrote (8491)1/7/1998 8:35:00 AM
From: Richard S. Schoenstadt  Read Replies (2) of 31646
 
> This is definetly a fast growing company.< FALSE!

WAS a fast growing company.

This is a company that has hardly grown in the last 4 qtrs.
The company had revenues of 11.2 million in qtr. 3 97.
That FELL to 9.6 million in the 4th qtr.
Rose SLIGHTLY to 11.3 million in the 1st quarter.

If in fact revenues are flat again for the 2nd quarter that is 4 quarters of flat revenue growth.

At the same time there has been substantial growth in the number of shares.

THEREFORE the earnings power of the company is substantially less then it was a year ago.
That is a marked DETERIORATION in the fundamentals since earnings power drives the stock price (in the long run).

Also at the same time there has been a deterioration in the bottom line.
That is the bottom line has been shrinking.
After 3 quarters of being even or slightly profitable, including the 3rd qtr, the company has now reported 2 quarter in a row with losses.
And if revenue is flat this quarter, I suspect they will report another loss - unless they managed to get some of the Marshall Hyman money.

As far as the 10% increase employees goes that is good news.
You say it is 10% in the last 2 months that may be true.
And very good news if they keep up at that rate going forward.
However it also only about 10% since last June.

When you add together the expectations of growth for both the year 2k business and the core business 10% employee growth in 6 months is not impressive.

You also say that with the latest news posted on this thread (by that I assume you mean the news that revenues will be flat) we are guaranteed another significant increase in revenues from last year.
Well this is true I suppose. Revenues in 2nd qtr of last year were
about 9.4 million so another qtr. of 11.3 would be about a 20% increase.

However all the above points apply.
Furthermore I doubt there is a person on this thread who thought that revenues would be flat this quarter.
You yourself have been speculating that revenues could be over 18 million.
And now you think 11.7 million would be good news.

No. This if it happens is bad news. Anybody reading the conference call would have expected a minimum of 12.3 million if not 13.5 million
in revenue.
(The million they say they could have earned if the work was not diverted to R + R and the 1.2 million in orders they said they had for year 2k work.)

This is most definitely not a value stock. And it is no longer a growth stock.
(It was until the we got the 4th qtr earnings and revenues.)
That doesn't mean it won't get back on track.

But right now it is a story stock - with explosive potential if certain things happen. So far they haven't and in fact the company has disappointed everybody's expectations.

There's a lot of gasoline lying around but so far nobody's lit the match.

RS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News