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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: RDavidson who wrote (5755)	11/10/1997 1:41:00 PM
From: Zebra 365	Read Replies (1) \| Respond to of 31646

There are only two ways for a company to raise cash, debt or equity. I would greatly prefer that they raise it through debt and not dilute the equity. Unfortunately, I don't know if their past track record will allow that to be done at reasonable rates. Remember, this company does not yet have a profitable quarter. Regardless of how bright the future may be, they have little hard capital, its all intellectual capital, difficult to liquidate if need be. Just talking from a lender's perspective here. I suspect that they are having to raise cash here and we shall see on Friday how they intend to do it. Zebra

To: RDavidson who wrote (5755)	11/10/1997 1:50:00 PM
From: Rob L.	Respond to of 31646

What makes everyone all of sudden think cash flow is not sufficient? If the company needs cash, here are my thoughts on raising capital: 1) I don't think the company has quite proven itself yet which makes it difficult to raise additional capital. Hopefully this earnings report will be encouraging. At that point, more interest in the company should ensue hopefully followed by a rise in the stock price. With the stock rising, the company may be able to float additional shares to cover cash flow (though it may take some time to put this together and get shareholder approval). 2) I like the idea of the alliance partner providing capital, but I'm not convinced Wonderware wants to do that. If it were going to provide capital, why not consider taking a stake in TPRO or buying the company. If it is interested in buying TPRO then Wonderware would want TPRO's stock price to fall to make the acquisition cheaper, thus no cash infusion. 3) A convertible now seems a bit premature and would require the company to pay very high rates of interest as would a line of credit from a bank. 4) The alternative, most appealing and cheapest way to raise capital is to sell more product at the lowest possible cost.