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Waldemar: One thing we're waiting for is execution of the Jenkins' game plan for TAVA: turn TAVA into a national systems integrator. As "just-in-time" inventory and supply chain logistics react to the continuous consolidation of manufacturing, those in the supply chain need to locate near the prime contractors factory. For example, if I sell industrial gases, my client may have a dozen specialty metal factories scattered strategically across the country. I have to locate close to those factories with my industrial gas production. I want to deal with one systems integrator (ideally), but my factories are scattered. This trend is repeated in sector after sector. So systems integration is changing from a lot of local SI's to one-stop shopping. The Y2K cash and introductions to Fortune 100 managements is accelerating this process of TAVA, but at the expense of slowing down the acquisitions that Jenkins was pursuing prior to last year. The cash should put the acquisitions back on track - eg, Mangan. With the new estimate of $400 bil. in post-2000 Y2k spending, I'll estimate that TAVA gets a 3rd year of at least $25 million in profits from Y2k. If the first 2 years cash are used to acquire $500 million in sales, which should generate at least $25 million in profits, and we add Year 3's additional $25 million, assuming that Jenkins puts all $50 million into acquistions in Year 3, we get an additional $500 million in sales - in other words, $1 billion/yr company, and making $1-$2 in EPS. |
