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


To: Rob L. who wrote (9182)1/21/1998 1:45:00 PM
From: JDN  Read Replies (2) | Respond to of 31646
 
Dear Rob: Past in a turnaround company with even a new product is no predicator of the future. Not even the management is the same. Check out BAY same type of situation.
Yes, I would recommend this stock to an investor who is NOT RISK ADVERSE (ie it is SPECULATIVE as is ANY turnaround candidate). My reasons for recommendations are MANAGEMENT, PRODUCT, MARKET and TIMING. Sure they have problems, any company does, turnarounds more than mature companies. We pay management to find ways to solve those problems and I have all the confidence in the World in Jenkins and Team to do just that. JDN



To: Rob L. who wrote (9182)1/21/1998 1:51:00 PM
From: Mike Winn  Respond to of 31646
 
Rob L.,

You don't understand anything about financial. If a company hires 450 engineers, they must make 450 times what each engineer can produce. The only company that can make money without engineer is FBN but that's an exception. So in the past, TAVA had negative cash flow because they don't have enough engineers, you know there is always overhead such as rent, electric bill, heating, time spent on SI, donuts, bagels, etc. Now they are going to have 450 engineers, they should make more money. It's just simple as an arithmetic operation.

Now you also have to believe in the CEO Jenkins if you're in this stock. He said that the company will grow beyond year 2000, you just need to take his words for it.

About the cash flow, the company has about one million in the bank. That should be enough to pay the salary of 450 engineers for 2 weeks. Contract should flow in the next 2 weeks. If not, CEO Jenkins will chip in another million to keep the company running in exchange for a bunch of stock options.

Hope that this helps.

Mike.
Long long TPRO