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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Steve Woas who wrote (17142)5/18/1998 9:40:00 PM
From: Karl Drobnic   of 31646
 
Steve: I thought today's action was a good entry point to buy some TAVA shares for my income account. I plan to generate income by writing covered calls (in that account). If my projections about calls premiums are reasonably close, TAVA should generate a standstill return of 30% or better, and better if exercised. Not bad for an income objective. As for today's weakness, it looked to me like a large position being liquidated rather hurriedly. There could be many reasons for that. A likely one is that TAVA will not report numbers again until autumn. That's a long time for fast money to hang around. We probably had fast money coming in before the CC, and since then, we've been seeing it leave.
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