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

To: James Strauss who wrote (12438)	3/10/1998 1:33:00 PM
From: Jack Zahran	Read Replies (3) \| Respond to of 31646

My take is a P/E of 50, with earnings double what is projected. And I think that is conservative. The KO contract alone within 18 Months will do that (I'm referring to all the work that is going to come out of the Pilot). Remember a Pilot by definition is only the beginning, so if their pilot is 10 International Plants, how many will the final contract be? The Coke Y2K work started as one plant regionally to 10 Plants Internationally. Next is the full Roll-out. Oh, did we forget the other Pilots that are about to convert to full contracts? JZ

To: James Strauss who wrote (12438)	3/10/1998 2:57:00 PM
From: Jim Wilke	Read Replies (1) \| Respond to of 31646

TAVA in its Monopolistic niche might even demand greater P/E's... AOL currently sports a P/E of 246... Hmmmmm.... So really to get my $120 per share all we need is a PE of say ... 148. If AOL can do it, TAVA should be a piece of cake ... uh ... right? I'm waiting, but not holding my breath! - Jim

To: James Strauss who wrote (12438)	3/10/1998 6:29:00 PM
From: Norman Stone	Read Replies (1) \| Respond to of 31646

James, Your ebullience is admirable in its own right, but I can't agree with your P/E projections. Let's do the math. Start with a three-year time frame. Over three years, with moderate risk, what return should I expect? Let's say I hope to triple my money. I can double it in blue chips. A P/E of 100 predicts at least a ten-fold increase in earnings over those three years. A ten-fold increase would result in tripling the stock's price while settling into a P/E of 30. It's that simple. really. If in three years Tava will be at ten to fifteen times current earnings (yielding a P/E of 20 to 30 at that time), a current P/E of 100 is justified. It's only the "will" that gives us pause. Can you project earnings in three years that equal the stock price today?