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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Skeptic who wrote (12512)3/13/1998 6:27:00 AM
From: Mr Logic  Read Replies (3) of 31646
 
Skeptic, excellent post. Just to let you know that someone appreciates and agrees with your side of the valuation argument.

Tava story sounds fine, but what is it worth?

Valuation needs estimates of future earnings, no different to any other company.

1. Year 2000 earnings should have P/E of 1, given
2. Non-y2k earnings calculated separately. These can take into account any benefit from investment of y2k earnings, increased company experience and increased exposure to potential clients.

I am amazed that 'investors' are not inclined to at least estimate a fair value for the stock. Or, more easily, reverse engineer it. Take a future, wished for, high stock price and calculate what growth and earnings match this price. Then do a reasonableness check.
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