According to Scott Liolios (TAVA's Investor Relations rep):
1)TAVA last met with Emerald Research, one of 2 investment firms covering TAVA, on June 8 for 3 hours. They are now rebuilding their model. (Mr. Pink apparently thinks this means a downgrade. Could mean an upgrade, or a reiteration of the original recommendation (Buy))
2)The language and terms of the loan from Tandem/Sirrom is not unusual. (I don't know enough about this to comment.)
3) TAVA will continue its practice of putting out press releases about once a month or so. It does not want to "hype the stock", and the firms it met with during its road show last week are comfortable with this as well. (TAVA has always been VERY conservative in issuing press releases, BTW.)
As for TAVA post-1/1/00, please read this post on the most recent update from Hanifen Imhoff, the other investment firm covering TAVA.
Anyone who thinks y2K business will stop on January 1, 2000, BTW, needs to educate themselves a bit more on the problem.
From: Wildman262
Wednesday, Jun 10 1998 11:31PM ET
Hanifen updated their report on TAVA on 5/20/98. I don't know if this was already posted or not. I will post some of the highlights. I was told that these were conservative estimates.
1999E is $1.10 on 125million. The 125 is broken down:
90 y2k
12 hardware resale
23 services base
"we have increased our level of confidence that he market for TAVA's y2k product is large."
-company is instituting price increases of 10-25% for y2k tools and services.
-y2k rollout slips about one qtr, thus lowering 4q98 and 1999 estimates from $1.25 to $1.15.
-plans to increase it's tech. workforce by 30% in the next 90 days.
-TAVA is laying the groundwork for INCREASED Growth in core business beyond year 2000. some things they are doing...
1) They have formed a consulting division headed up by Tom Bruhn who was the
former Dir of Bus. Dev. for Raytheon's Auto System division.
2)They plan to increase by several million the amount of investment spending in 1999,
3)the recent linking of a y2k contract with follow on for future services
4) the evaluation of potential acquisitions
Basically, Hanifen believes that risk with with TAVA is their ability to execute the stratagy. There is plenty of y2k business to be had. |
