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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)
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To: ajbat who wrote (10166)2/1/1998 10:24:00 PM
From: Karl Drobnic  Read Replies (2) of 31646
 
Contracts: TAVA speaks of engagements. A company engages them to do a certain amount of work, such as an assessment. Extensions of those initial engagements lead out of the original work assignment. Sun Oil engaged TAVA to do Y2K assessment. That led to the engagement to do further work. Matsushita engaged TAVA to do some FAB One work. That led on to $6 mil. of work. When TAVA "bids" on a project, it is often a negotiation based on previous work TAVA has done, and TAVA is often the sole "bidder". This style of doing business is fluid, and causes anxiety for investors. TAVA says that for each $1 in initial engagement work it is landing, it is leading on to another $9, and this is high profit margin work. Curl up with $1 gets you $9 more rule, and let the warm fuzzy feeling work.
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