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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: RAVEL who wrote (23907)10/12/1998 10:26:00 AM
From: Rick Bullotta  Read Replies (1) of 31646
 
Highly unlikely you would see a price remotely near $15 in the event of any acquisition of TAVA. Service companies haven't typically even garnered 1X revenues. Look at the prices TAVA (then TOPRO) paid for its constituent companies. More like $5-7 would be reasonable. I agree with you that TAVA is a ripe target, and I maintain that GE is a very realistic suitor. Do not be at all surprised to see some activity on that front! I would seriously doubt anyone like ITWO, ORCL, PSFT, Raytheon, or Keane would be interested in TAVA as an acquisition. And IBM would be a long shot. CSC and GE make a bit of sense.

Unlike software companies or other techs, where the upside is theoretically unlimited, a service company can bill no more than the # of employees it has, at the more-or-less market-established rate, so revenues are very well known.

Still a potential for a two-bagger, which in this climate, isn't all that horrible!
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