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

To: Skeptic who wrote (7090)	12/10/1997 3:38:00 PM
From: JDN	Read Replies (1) \| Respond to of 31646

Dear Skeptic: In my humble opinion you are not considering all the sources of income available to TPRO. Lets start there with no numbers just sources 1. Base Revenues (this is their normal reoccuring business outside of anything related to Y-2k) 2, CD-ROM revenue (this is Revenue from the sale of the Plastic 3. Remediation Revenue related to FIXING identified Y2K imbedded systems problems. (I believe this is the item Management estimated at around $350,000 per plant has been their latest estimate. 4. License fee Revenue(this is Revenue to be derived from Licensing others to perform the remediation using the TAVA approach) I understand the market in the USA is in the neighborhood of 70,000 which is far more than TPRO can possibly serve. I believe they intend to skim off about 5,000 and license others out. 5. Miscellaneous service revenue related to training etc. 6. Material sales which they markup 10%. Those are things which come to my mind without a lot of research to see what I may have forgotten. I invite others to add to the list. Once the list of revenue SOURCES is determined we can then try and add numbers for next 2 years. I refuse to even begin to guess after that as it would be pure conjecture. Not even the Pros try and go out farther. JDN

To: Skeptic who wrote (7090)	12/10/1997 5:21:00 PM
From: paul e thomas	Respond to of 31646

SKEPTIC, Your assumptions look ok to me for the business as projected by RED CHIP.The key issue to me is how to value the one time very large cash flow from CD sales. My own valuation calculations produce numbers much closer to yours than many others floated here.In any event no one can make a very accurate valuation estimate for TPRO.Once the market discovers TPRO I intend to use technical analysis as the vehicle for most of my buying and selling decisions. In any event I find it very unlikely that in due course the market will value TPRO more conservatively than your estimate.Even if it takes until May 98 for the market to believe the projections given by Red Chip a 50% price appreciation in 6 months would be better than I can do with alternative investment possibilities.

To: Skeptic who wrote (7090)	12/10/1997 7:38:00 PM
From: STLMD	Read Replies (1) \| Respond to of 31646

Skeptic: Your post is guilty of the same thing you believe TPRO is guilty of: Namely, assuming a one dimensional view of this company. I am not going to dispute your EPS figures(although I believe they will be much higher in 99 and 2000). Jenkins has stated in previous CC(August I believe) that the company is interested in acquiring more companies in this 1.5 BILLION DOLLAR BUSINESS GROWING BY 15% PER ANNUM. He will acquire geographically strtegic companies in the US and then go overseas. Where will he get the cash to do this? More Shares? NO. Y2k. YES. This will enable TAVA Technologies to become the preeminent Systems Integrator after 2000, with a sizable share of the SI market and the economies of scale, and DATABASE required to grow. The share number will remain the same but revenues and earnings will continue to grow. This is a SI company with expansion plans well thought out which will return to long term holders much more than y2k. Y2k and their database,high quality work, and excellent leadership, pave the path for their consolidation and success beyon 2000. IMHO. Long on TAVA/TPRO Stephen

To: Skeptic who wrote (7090)	12/11/1997 7:25:00 AM
From: Rob L.	Read Replies (1) \| Respond to of 31646

Skeptic, if TPRO is earning $2.50 a share in 1999 and 2000, I can guarantee you the stock will be trading at significantly higher levels. I am not sure I understand your analysis. You are saying that if the company earns "$1.02 in FY1998, $2.50 in FY1999 and FY2000, $1.00 in FY2001, and $0.50 in FY2002 (no millenium bug here)", the stock will only be at around 9. That is only a PE ratio of around 4-5 for 1999. Rapidly growing companies, if TPRO turns out to be one of those, command very high PE's. If you assume that the the stock could connservatively trade at 30x its per share earnings, then according to Red Chip's $1.02 estimate for 1998, then the stock should be trading at around 30. Am I missing something here?