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


To: Andrew H who wrote (9313)1/23/1998 8:26:00 AM
From: Jack Zahran  Respond to of 31646
 
The margin for Y2K remediaion work is significantly greater. And, while the ultimate profit on each C.D. sale may average $30,000 the plant remediation work will average $300,000 (with a high ~70% margin). The CD will definetly pay for itself and already has from what I can deduce from the companies filings,releases, etc. In addition the CD will hopefully generate a good deal of cash. The Plant remediation aspect though is what is growing their workforce by 50% to 450 from 300 before the end of the year. It is also raising their services margins significantly.

Another important factor of the CD/Plant work is that TAVA now is getting access to higher levels in management and acting as the lead Contractor in multi-plant engagments. This is very significant. It takes only one good contract to have a significant impact on revenue growth.