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

To: Quad Sevens who wrote (14630)	4/12/1998 5:58:00 PM
From: Seb Maitra	Read Replies (1) \| Respond to of 31646

Wade: I think it's extremely likely that TAVA will earn about $200 million in FY 1999. For a growth company a psr of 8 is quite common. This simply gives us a market cap of $1.6 billion for the company. assuming the number of shares doesn't go beyond 25 million (unless of course there is a split), I don't think $70 a share is impossible. Alternatively, if they achieve a 30% net margin or $2.40 a share with an average 30 pe in FY 1999, you get $72. The question however remains that how TAVA is going to convince the Street about its long term game plan so that the Street will not have a problem assigning it a 30 pe. I think a great management like Jenkins and co will have no problem convincing the Street about its long term strategic intent. Tell me if I'm being overly optimistic here. And, if so, what do you think it should be. Again, I'm looking at 4Q FY 1999 share price. Regards! -Seb