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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Skeptic who wrote (12449)3/12/1998 10:08:00 AM
From: Skeptic  Read Replies (2) of 31646
 
I invited the bulls on this thread to justify Tava's valuation. Here is a sample of the responses that resulted.

From the "its impossible to value" camp.

"it is difficult if not impossible to estimate the fair value of this stock"

"Investors are buying the "potential"--how can you put a valuation on that?"

Then why is everyone so sure that its undervalued?

Or how about the "it can't be overvalued because its not as expensive as ..." argument:

"Y'know - I've been wondering the same thing about YHOO stock."

"I think its worth a HELL OF A LOT MORE than this shitty AOL system which is now priced in the HEAVENS."

"many people were wondering what the worth of KEA was 10 years ago"

"AOL currently sports a P/E of 246"

And finally, the high multiple of Y2K earnings method:

"My take is a P/E of 50, with earnings double what is projected. And I think that is conservative."

"P/E of 50 because it is high growth."

"A P/E of 50 applied against an eps est of 1.00 to 1.50 gives us a 12 month price target of 50 to 75... I'm being even more conservative than you..."

"no one assigns PE=1 to ANY company"

...No, just to that company's non-recurring cash flows. Every analyst that has reported on Tava has taken this approach. And they're the market-makers pushing the stock!

How about adding a valuation section to CK's report? Hopefully, it will have a little more substance than this useless drivel. The thread's reputation for superior due diligence is at stake.

Super Skeptic - For truth, justice, and the American way.
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