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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Frank Brisebois who wrote (29933)4/1/1999 8:52:00 AM
From: JDN  Read Replies (2) of 31646
 
Dear Frank and all: I see Capt. Jack in response to your post gave us the latest TAVA PR (ggg). Isnt it great how they are keeping the price down so we can acquire more???
Here is something to think about contributed by Bonzo3 at Motley Fool the other day. I believe he said that Compuware was sold for 3.75 the current run rate of Revenue or 4+times the trailing Revenue. If JJ was telling the truth that Revenue next year will be in the 200-400 million range--assuming the lower and the lower Compuware sale multiple I come to something like this:
Revenue 200 Million
Shares 25 Million
Divided 8
x's 3.75 = $30 a share fair value
Now, one could argue that the composition of Compuwares revenue includes more software and less Service vs TAVA and thus is more valuable. On the other hand perhaps one could argue that TAVA's client base, open field etc counteracts that. In any case dont you all think the above is something to think about? JDN
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