As you know, S, G, and A are three very different things! <g>
And the "S" category needs to be analyzed between the ongoing project sales activities and promo activities associated with Plant Y2K. I would love to see TAVA track the Y2K division as a separate P&L (externally) rather than just a separate entity from a litigation standpoint.
Of course, dog and pony visits need to bear fruit. And they certainly seem to have been doing so, as evidenced by the significant contracts TAVA is landing. Nice thing is that dropping a couple grand on a trip to the Netherlands or Atlanta or Biloxi can be paid back in the first week of billing on a T&M Y2K audit!
Revenue growth is very important to me, of course, as is the operating margin. And, I'm quite aware that TAVA is still somewhat in "invest" mode on the Y2K stuff, but folks, the clock is ticking on the time remaining to reap the rewards. Revenue growth will need to be nearly exponential to deliver the expected and project returns. And it very well could be! Think about it another way...in about 18 months, TAVA will be an "industrial automation systems integrator" again, and I'd like to see the profit machine for that part of this business tuned, oiled, and racing down the road by that point in time.
I'm remaining bullish on the opportunity, short and long term, but very watchful of the ramp up rate and of the foundation being put in place now for the "post millenium" years. My current interest in TAVA is a (for me) fairly significant long position that I won't touch and a pool of "mad money" that I day trade against the volatility of TAVA and some other techs (of which TAVA has provided about a 60% effective return in the past three months!).
- Rick |
