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

To: Starduster who wrote (7697)	12/21/1997 12:45:00 PM
From: M. Frank Greiffenstein	Read Replies (1) \| Respond to of 31646

Red Chip, call your office... I appreciate RedChip being conservative, but treating y2k revenue with a x1 multiple is poorly thought through. In other words, they treat it like a nonrecurring cash benefit. Under this treatment, we should also treat KEA, CHRZ and DDIM as nothing more than Money Market certificates of deposit? Hell, even a passbook savings account with 5% yield represents a PE of 20 ($1/.05) !! Wade Ramey makes a killer point over on Motley Fool that RedChip ignores the ability of management to do something with the money. In other words, Red Chips (unintended) implication is that they have no faith in management. So, can we expect zero ROE? I don't think so. IMHO, the y2k CD-ROM represents a foray into industrial software. RedChip and others do not seem to be aware that TPRO writes other software, such as Bev-One for the softdrink industry. Why can't the y2k CD-ROM revenue be treated as software product revenue rather than some non-recurring tax benefit. And I am sure Jenkins knows what to do with a ton of cash. Which brings up my prediction for 1998: TPRO will buy another engineering services company. There is no way they can expand their services fast enough to meet what appears to be overwhelming demand. BMY will tie up the FTE of 60 engineers for two years (or 120 engineers for one year). Now Cheryl digs up news that implies Unilever will have to rely even more heavily on TPRO. With the big core business contracts they got going, how is TPRO gonna do it? It would be nice to hear something out of Wonderware and SquareD. DocStone