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

To: David Howe who wrote (15848)	5/2/1998 10:12:00 AM
From: JDN	Read Replies (1) \| Respond to of 31646

Dear Dave: I like your numbers but unfortunately find some faults. First, as of now, TAVA is engaged in a number of Pilot Projects. I seriously doubt they get full rate for them. When I was in business we did a lot of that stuff gratis and considered it more of a marketing expense. This is likely the reason earnings are not what we would like them to be considering the potential. Second, you use 500 engineers. At least at his last comment Jenkins sort of said that he was not going to put a lot of engineers on the payroll that he couldnt keep busy after 2000. Perhaps with all the new work he has changed his mind but thats all we have official as of now. Also it will take at least another year to work up to that level based on current hiring patterns through 3/31. Thus it would be probably year ended 6/30/2000 before we would reap the rewards, by then I presume business would be tailing off back toward base levels. Course, I am hopefull that with all these contacts base levels are MUCH HIGHER than present. Finally, I think that TAVA's BEST HOPE of reaping INCREDIBLE profits lies in licensing out the technology to others ASAP. They not only could sell the CD-ROM into that market but reap royalties as well. And they would not have to ramp up to an unreasonable number of engineers. Besides the large contracts we know about I think we should be watching their licensing efforts and what they recieve in the way of income from that. JDN

To: David Howe who wrote (15848)	5/2/1998 12:28:00 PM
From: Karl Drobnic	Read Replies (1) \| Respond to of 31646

David: I like the range of thinking you show in getting your numbers. You came from a different direction, and nicely displayed the earnings potential in TAVA. I continue to think that the question with TAVA is the ability of management to execute without a major misstep. The business is there, the profit is there. So the Coke(?) contract is a watershed event. Either it will use up their resources, or it will be the model by which they sign 1, 2, 3....N Big Guns and leverage their leadership position. So far, the evidence (BMY expands from pilot to 125 sites, Medeva goes to early remediation, Coke(?) goes from 10 to 1200 sites) is that their clients have confidence in TAVA's ability to deliver. I do, too.