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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)
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To: CalculatedRisk who wrote (21169)7/27/1998 1:59:00 PM
From: j g cordes  Read Replies (3) of 31646
 
CR.. try running your formula for success on some other companies using "So the Y2K business is being valued at $125M. This is not $125M in revenue, but $125M in after tax profits over the next 2 years. A "not to exceed $9M" contract, like with the LADWP, may generate close to $1M in after tax profits. It is simple arithmetic to figure out that TAVA needs to do over $1 Billion in Y2K revenue in under two years to achieve $125M in after tax profits - impossible!"

Are you saying market cap should equal "profits" over the next two years? No company would meet that criteria.

IBM's won't profit its market cap of $116 billion
ORCL won't profit its market cap of $ 25 billion
MSFT certainly won't profit its cap of $ 278 billion

Nor will TAVA cease to exist after 2000 and only be the worth of its
core business. Indeed its core business has become the Y2K business and the opportunities they will provide going forward.

For some odd reason some people figure its bad in some way to have a short term business windfall. This is like saying its bad for a company to get one big contract out of the blue, or for a family to win lotto. The capital gains, work relationship and exposure are unique opportunities that most companies would die for.
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