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

To: jan m. who wrote (15207)	4/21/1998 9:34:00 PM
From: lbs	Read Replies (1) \| Respond to of 31646

Someone asked me about Tava on another thread, and I thought people might be interested in my response. Any comments are appreciated To: +Sonki (18082 ) From: +lbs Tuesday, Apr 21 1998 9:28PM ET Reply # of 18084 On the subject of Tava, I really don't know what to give you as a short term target. The company is doing incredibly well. It has signed up so many Fortune 100 and 1000 clients that it is hard to believe. That being said, I am not sure how much Y2K revenue they will make for this quarter. One of the great wild cards with TAVA is their CD sales. This is a 85% GM business, which I think has to explode over the next two years. This is on top of the jobs that they do themselves. Tava will not be able to provide hands on service to all the affected companies. Companies will use their own workers to do the remediation based on Tava's methodology. Wonderware, which is a huge factory floor software company, sent out over 20,000 CDs to their client base. The uncertainty comes from the fact that there is a ninety day trial of a limited version of the CD. This expires after the end of the quarter. This is where the uncertainty comes from. As far as a short term price target for tava, it is hard to give. What I am basing my estimates on is that they make at least .25 for 1998 and well over a $1.25 for 1999. I think these numbers are very, very conservative. If you give TAVA a multiple that is equal to companies like CBSL, MAST, IMRS, based on 1999 earnings, it is clearly underpriced. However, while TAVA will be a very successful company after the y2K, I am not sure what their revenues will look like. That is the risk with this stock. Hope that helps, Dan PS I fully expect to see it over 30 on a combination of earnings and hype over the next 6 months. ---- Sorry for the crazy format.