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

To: TokyoMex who wrote (7003)	12/9/1997 11:32:00 AM
From: M. Frank Greiffenstein	Respond to of 31646

Scrapping vs. Renovating... Somebody started a discussion a while back about scrapping machinery and replacing it with new equipment. The poster implied that this was bad for TPRO. Actually, this is an argument that was frequently made on the IT/IS side of the Y2k problem. People will buy new client/server systems and enterprise software, and this would hurt the Y2k companies. Or so the argument goes. But TPRO is unique. Let's say that most factory managers do dump their old equipment. TPRO will benefit hugely. How many of you recall that 40% of TPROs revenues represent MARKUPs of materials? TPRO charges roughly 10% markup on machinery and supplies. Based on trailing revenues of 40 million, that means that TPRO installed 160million worth of machinery. So if there is a big move to replace aging factory floor machinery, TPRO also makes out like a bandit. In summary, TPRO is a thing of beauty. They win any way the factory floor embedded chip problem takes direction. DocStone