Friend of mine over at the Motley Fool area on AOL did a little follow-up on Raj's post,
so as per the soon to be famous Nanchate:
I just got off the phone with Scott Liolios TAVA IR. I wanted to confirm the information off of Si posted by Raju Ramaswamy. He confirmed every point which Raju had made to me as being valid. He added that the biggest reason for TAVA's recent action has a lot to do with Viasoft (VIAS) Which recently got hit along with Computer Horizons (CHRZ) and the rest of the Y2K industry which was DOWN as a whole putting pressue on TAVA as well.
1. As regards the last 3 days price action, all he can say is probably momentum investors getting in & out is the cause. Fundementally nothing has changed..
Scott said true and stated the above reason which he failed to mention to Raju.
2. TAVA in terms of new engagements/business is more STRONGER NOW (today) than it was 30 DAYS ago...I repeat...just 30 days ago.
Scott told me that at the last conference TAVA announced 60 engagements. He said that on average TAVA is signing 2~3 engagements per/ week, and he is in the practice of only releasing a press release once every 45 days. It would make no sense for them to release every engagement signed, not to mention the fact that the Clients would not appreciate it.
3. BMY intial contract was for 1 plant pilot study. NOW THEY HAVE ENGAGED TAVA TO TO INI (INVENTORY ANALYSIS) FOR ALL 125 PLANTS...!!!! LEADING VERY LIKELY TO FULL SCALE CONTRACT..HOWEVER THEY (BMY) ARE NOT VERY KEEN ON ANY TYPE OF PRESS RELEASE NOW.
Scott said this is mostly true. The fact is when BMY initially signed with TAVA it negotiated the tool and data base agreement for 124 plants but BMY wanted to use self execution, meaning that BMY wanted to use as many inhouse people as they possible could. As time has gone by this has been growing into more plants as BMY is very pleased with TAVA and the work provided. What initially would have been worth $1.5~$2 Million for TAVA has the potential of turning into a $7 million dollar deal in time and materials for TAVA.
4. As regards 3rd quarter being in BLACK, Scott said, nothing has changed for him to believe that this may NOT be the case.
Scott said, I must realize it is not Corporate Policy to make any comments on this subject as they are in a Quiet Period. He added if anyone is speculating either way they are doing so based on their own viewpoint. If someone believed TAVA would report a loss they will believe they are reporting a loss. If someone believe they will report a net profit they will report a net profit....saying he CANNOT comment. He said at last word was TAVA had been expected to report a net profit and he said nothing has either changed or happened since then so people may think what they wish, but NOTHING has changed.
5. Lastly, when I asked him about press release in near future, while making fun of SI thread's very high anticipation (5 minutes interval), something may very likely to be released before the 3rd quarter results are out.
Scott said, as stated above, that he is in the practice of sending out a press release approximately every 45 days. He said it is funny how people want news everytime the stock is down, but he hears nothing when it is up. He said it has been a busy few days for him. If TAVA has some major news to release between that time it will be posted. But because of the respect for the clients who prefer to notve it released they respect the wishes of the clients. Based on the 45 day point one shold be released shortly. |
