TAVA makes the front page of SI ...:
The most popular Y2K stock thread at SI gathers to talk about a small
company called TAVA. The reason for the popularity of the company is the "embedded chip" problem. Embedded chips are used in controls in
factories, power plants, elevators, appliances, and so forth. 90 % of
microprocessors in 1996 went into embedded systems. TAVA has an embedded chip Y2K fixer-upper system. John A. Mizgalski claims to work for a company that is a TAVA client and is initiating a remediation effort based on TAVA tools. He told the TAVA thread on March 25......
The remediation effort has been designated as one of our 5 company-wide areas of emphasis for 1998. The effort is being led by a high-level, cross functional, crossbusiness team, which reports to the CEO on a monthly basis. The company is systematically assessing its own year 2000 readiness as well as that of its' suppliers and customers. What I cannot share - The status of compliance at this time. How well the tools are working to achieve compliance. And the number or percent of critical components in the company. That's all for now.
By the way, notice the price rise in TAVA the last few days?
No kidding. The stock moved up from $8 at the beginning of March to
$14.50. The thread was jumping.
Josef Svejk told the thread on March 24......
Humbly report, All, TAVA became a teenager today! My my, how fast this
kid grew up. :-)
The next day, jan mccabe got all excited....
YeeeeHAAAA!!!!! Bought another 1000 at the open---sorry MOM---couldn't
help myself!!!!
Of course for every buyer there's a seller, maybe even a short seller.
An hour later, Patrick S Booth informed the thread..
I did go short today. It seems $150m+ or so of TAVA's market cap is down to Y2K... with $1.7m Y2K revenues in the last quarter they need to go some to justify the current price!
And another one of the few negative voices was jgibbs who posted this
message on March 24.......
For those interested, here is why Schwab is not margining TAVA:
1.negative earnings the last two quarters
2.negative cash flow
3.twelve times book value
4.volatility
5.no nasdaq approval
The story of TAVA has been played out on other Y2K stocks as the market runs quickly in a range between wild optimism and a harsh reality of unrealized dreams.
As we get into the home stretch of 1998, the press may begin to latch
onto the Y2K story and play on the Titanic scenario of misplaced faith
in technology. If more serious doubts are raised about the preparedness of critical systems, and the economic fallout of the repairs begins to hit home, a panic may ensue that would drive the shares of Y2K companies higher.
Just remember one thing. Time will run out on these stocks long before
it'll run out on this millennium.
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Dave Zgodzinski |
