Here is the portion of thestreet.com article that deals with TAVA.
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The Motley Fool and Silicon Investor favorite Tava (TAVA:Nasdaq) --
prevously known as ToPro -- continues to be the only player in the Y2K
embedded systems market. And while a number of other industry analysts
and CEOs quietly wonder what the company is up to, the company's stock
is rallying (closing Tuesday at 8 5/16).
CEO John Jenkins spoke in very vague terms about the company's "more
than 35" clients, calling them "a major food processing company" or "a
leading soft drink company." But in explaining the Tava business model, it increasingly sounds like Tava provides very little bang for the buck. Essentially, what the company offers is a list of devices that won't work after 2000 -- Tava doesn't fix them, it doesn't replace them, but it will tell you what doesn't work.
Tava sends out people to the factory floor to do an inventory, the Tava crew jots down some serial numbers and model numbers, and, according to Jenkins, "we send that inventory to our database of 12,000 items for suspects."
And then what happens? "Then," says Jenkins, "we create a paper
compilation that is a status of the inventory."
You see, now I'd just call that a report and I couldn't see how that
process would justify a $140 million market cap -- but I guess that's
why I'm not qualified to be a Year 2000 CEO. |
