JDN and all,
Gosh, it's nice to see that everyone's so mellow this evening and having such a great time with my SI handle. (Actually, I had to come up with some reasonable login name because my real surname, Headbanger, is just too embarrassing for public disclosure. And no, SC, John Jenkins didn't have to refer to me as Mr. Hardrocker. He just calls me by my first name -- Punky). :o)
First and foremost, the call was excellent. Truly excellent. It was a great feeling to be in discussion with so many bright and insightful folks. Not only are the TAVA senior managers to be applauded for their candor and sensitivity, but fma and JDN receive a gushy, well-deserved vote of gratitude from me personally. Thanks to both of you for providing an avenue to express the concerns of many individual investors.
Now, regarding the issues of PR and IR. None of the following is intended to be a quote, but rather my synopsis of the theme:
John J. realizes that the company needs to ramp up the PR effort. He indicated, as we all knew beforehand, that a conscious decision was made some time ago to downplay the role of TAVA as a pure Y2K play. Rightly or wrongly, this decision was made and was driven by the outspoken concerns of many regarding the growth of TAVA's core business. (We've read and heard concern this many times, no?). At the time, Y2K companies had also fallen into general disfavor and so there may have been another valid reason to "distance" TAVA somewhat from the sector.
John also indicated that the pace of activity has been furious and that there has been a great tendency to keep "nose to the grindstone, butt in the air" running the company, building new relationships, garnering new contracts, etc. The tone was somewhat apologetic that, in this tidal wave of activity, some other matters (read: PR) probably suffered as a result. John was in no way defensive, but rather offered a reasoned response. He also indicated that Scott Liolios' hands were often tied because Y2K contract announcements and so forth are very sensitive matters to TAVA's clients. Great news for TAVA might represent negative news for the client. As an alternative to the typical contract announcement, JDN suggested that TAVA might consider releasing news which talks about the contract $$ without divulging the actual client. There was no commitment on this suggestion, but it seemed to be well received.
JJ also indicated that TAVA has been negotiating with two top consulting firms and should have made a choice within a month. The mission is to adopt a new strategy of creating a more pervasive awareness of TAVA, branding, image, and so forth. I envisioned that there may be a blitz campaign coming up in the near future. John did point out that TAVA has received some favorable mention in the WSJ and in trade journals such as Advanced Manufacturing Research. While the latter may have little meaning to most of us (no, not you, Rick Bulotta!!), it is actually significant in trying to build more credibility with analysts. And speaking of analysts, TAVA has held discussions with many and realizes that we need greater analyst coverage. Due to appropriate proprieties, there was no more discussion on this topic. But my fingers are crossed....
On the issue of IR, the main topic of discussion was better/more effective communication between TAVA and shareholders. Many of the "sore spots" about perceived insider sales, proxy issues and such could have been avoided entirely if we had received better information. The company painfully realizes this and hopes to implement a methodology in concert with the PR campaign referenced above. Several specific potential avenues were discussed as viable. I'm sure we'll see improvement in this area in the near future.
Fiiinnnallly, here were a few closing thoughts from Doug Kelsall:
In spite of some obvious weaknesses, TAVA has come a long way in the last 18 months. Institutional ownership has increased, exposure has increased, financial performance has increased -- these are things which will improve long term value for TAVA shareholders. Both Doug and John spend a lot of time with institutions, attracting new interest.
JJ also wished that we express that the use of stock options is definitely not a "giveaway game". It is a tool which gives TAVA great competitive advantage in attracting and retaining key personnel.
I'm sure I've left out several things, but my brain is pretty well dead right now. Thanks again to fma and JDN, and thanks to a great TAVA management team for giving us a chance to air our concerns. (HEY!! The sky ahead really DOES look blue!! Stay long and be happy with what's coming up next!!).
Best Regards,
Hardrocker |
