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

To: Cents who wrote (6186)	11/18/1997 8:29:00 AM
From: Rob L.	Read Replies (1) \| Respond to of 31646

Red chip may have some valid points as the hiring of new engineers will certainly add to expenses in the short run. However, a strong backlog and the announcement of new contracts will ease the burden. (The company stated in the CC that they were in various stages of discussions with potential clients so we can reasonably expect ne w contracts to be announced). In addition, the company stated in the CC that 15-20 engineers were working on R&D rather than doing billable hours. So the next 15-20 hires should add immediately to the revenue base. right? Also, how can the company grow if it doesn;t add new employees. The last thing the company needs is to be labeled slow and inefficient so hiring more engineers should make them more efficient. It's typical to see higher expenditures in start-up companies until economies of scale can be reached. As long as the company continues to generate higher levels of revenue, there should not be any problems, in my opinion.