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Technology Stocks : Trading TAVA -- Ignore unavailable to you. Want to Upgrade?

To: John Hanzl who wrote (35)	2/18/1998 7:53:00 PM
From: Jack Zahran	Read Replies (1) \| Respond to of 655

A contract is a contract is a contract. If it falls within their area it is business and should be viewed as part of their core. The reality is that one contract will open the door for three more within the same company. And they'll keep getting more work as long as they do a good job. Look how they got into the Y2K business. TAVA doing systems integration work in plants, included in their testing a Y2K test. A good, forward thinking practice led to a database (another good practice) which led to other avenues of contract work. It just so happened (no coincidence) that their first Y2K work was happening among their current clients. Now they have a whole bunch more clients and a bigger and better sales force along with a stronger engineering practice. They have a whole lot more partners and expanding (as I write this) into an International presence. Y2K work is over, now we know what you got and what you need. Here the additional solutions we got for you and your supply chain. Oops, you guys need help with all the work you are backlogged on due to Y2K, don't worry we are here and ready to help. In fact we already know all your operations and those of your suppliers. We can sell you stuff cheaper, because we are bigger than all the rest. We are a solution provider and there is no one as big or as bad as we are and we're on your side, blah, blah, blah... A contract is a contract is a contract....

To: John Hanzl who wrote (35)	2/19/1998 9:29:00 AM
From: Skeptic	Read Replies (2) \| Respond to of 655

There will be a paradigm shift that requires us to re-evaluate how we assign multiples in the next couple of years. One of the few things in finance that is universally accepted is that the value of an investment is the present value of future cash flows. You can argue endlessly about the timing and magnitude of cash flows and the appropriate discount rate, but not about this basic tenet. Investors are willing to pay multiples of current earnings because those earnings are expected to grow continuously. This is obviously an invalid assumption for Y2K earnings. The value of Y2K earnings cannot exceed their sum in any paradigm.