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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: JDN who wrote (16488)	5/12/1998 10:06:00 AM
From: eric deaver	Read Replies (2) of 31646

<<gross profit has changed dramatically >> FWIW, I agree. I know from personal experience that this is the advantage of "consulting". High margins on manpower. Who cares what revenues are if earnings are growing? I agree that this may be a problem if we were just seeing the results of cost cutting but, IMHO, we are seeing the results of increased utilization rates for manpower. A very healthy change. Remember, the number one overhead cost of this type of organization is professional salary. Increased utilization is doubly positive because it increases net income AND decreases overhead. At least that is what I was always taught. Sorry to ramble and GO TAVA!!! Eric

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