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

To: M. Frank Greiffenstein who wrote (5852)	11/12/1997 6:48:00 PM
From: Clayleas	Read Replies (4) \| Respond to of 31646

This was posted by TokyoMex on the Research Thread (don't know why he didn't post it here also). Probably one of the reasons for the price drop today. I sure hope this announcement comes with another one for a big contract. ==================================================================== To: +Alex (256 ) From: +TokyoMex Wednesday, Nov 12 1997 4:53PM EST Reply #257 of 257 TPRO is looking to do a 1 million (one million) share private placement at the street price (not discounted or any crooked deal) plus comm> The deal is to be brokered by Hanofen and will go to one or two institutions in blocks. This will give total shares outstanding including the outstanding warrants at 24 million shares. According to CFo they need money like mad ! as I suspected .The deal is kosher and above board. Its something I can live with. Company will most likely announce this at the conference with eanings and new contract news (I hope) So there you are. Joe TPRO

To: M. Frank Greiffenstein who wrote (5852)	11/13/1997 4:55:00 AM
From: JDN	Respond to of 31646

Dear Doc: Remember how it works. FIRST they must do an assessment to determine if there is any problem at all. Thats got to take some time. Then they have to make an estimate of the overall cost and draw up a contract. Thats got to take some time. Finally they have to implement the "fix" thats got to take some time. Revenue gets recognized only as they make the fix (percentage of completion method) or only at the end (completed contract method). Review footnote #1 to their annual financial statements to try and figure out which method is being used. It is very common for companies to use completed contract method when they have many contracts usually under a years duration and percentage of completion when they have few contracts lasting over a year. There is a lot of accounting work involved in calculating percentage of contract so it is unlikely they use this method if they are going to have hundreds of contracts going at once. So their could be a LAG between announcing they are working on a site and recording resultant revenue. THIS WOULD BE A GOOD QUESTION to ask at the CONFERENCE CALL. JDN

To: M. Frank Greiffenstein who wrote (5852)	11/13/1997 10:26:00 AM
From: Norman Stone	Respond to of 31646

>> There is some $$$ involved in try and buy even if you don't get the contract << Frank, good point, and that also means a lot of the first CD issue will be sent out on spec. At a hit rate of 5%, that means 5000 CD's will result in 250 eventual contracts (save the other 2500 CD's for PR, industry analysts and "long shots"). Figure at least 100 hours of negotiation time (per successful contract) for project directors, and a 3 month courtship* after initial interest. Add to this the "bottleneck factor" (too much work, too little time). The first wave of selling for a new technology is all uphill, particularly for a "service-heavy" solution like TPRO has. It is the big contracts that pull you through. The small ones will nibble you down... *This is a low time estimate, but TAVA has urgency on its side.