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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Ken Salaets who wrote (20291)7/9/1998 2:49:00 PM
From: CalculatedRisk  Read Replies (5) of 31646
 
All, several times I've drawn comparisons between TAVA and DDIM. Today's PR is very similar to DDIM's PR last October ... the beginning of the end!

Here are the major similarities between TAVA and DDIM:
1) Both DDIM and TAVA are consulting companies, but both feature their "product" prominently in their PR (for TAVA its PlantY2K One, for DDIM Ardes2K).

2) Their "products" are actually "how-to" methodology CDs. These are sold as part of their consulting agreements. Both companies weight the revenue of the agreement toward the product (perhaps misleading to investors, but not illegal). But most important, almost no customers just buy the CD ... the product is almost always sold as part of a consulting deal. This limits the growth potential of the Company.

3) Both companies are successful in the consulting business attracting numerous big name clients.

NOTE: For DDIM I spoke with a representative of Deliotte & Touche (a re-seller of Ardes2K) prior to shorting the stock ... D&T was very positive about DDIM the Company. I have done the same research with TAVA. TAVA, like DDIM, is doing well ... but IMO, like DDIM, TAVA's stock is grossly overvalued.

3) Both companies use every "accouting trick" in the book to boost profits, while cash flow remains heavily negative.

Here is DDIM's PR that I'm referring to:
data-dimensions.com
DDIM's price collapsed not long after this PR!

I consider TAVA's PR today to be excellent news for all short sellers.
Regards to All, Bill
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