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

To: Rick Bullotta who wrote (16076)	5/6/1998 10:14:00 AM
From: JDN	Read Replies (1) \| Respond to of 31646

Dear Rick: Has it ever occurred to you to estimate the cost of hiring 70 engineers during the quarter not to mention the significant amount of pilot stage work? I have no feeling at all this quarter however, I am hopeful that TAVA has now met critical mass as to where these types of expenses will no longer be so material to the bottom line. JDN

To: Rick Bullotta who wrote (16076)	5/6/1998 10:34:00 AM
From: Jack Zahran	Read Replies (2) \| Respond to of 31646

Rick, I have no doubt that TAVA will report positive earnings, but not 10 EPS yet (They probably could if they wanted to pull cash out of their reserve.) This will probably be a good gross revenue quarter, but growing 70 people during one quarter is very expensive. If you'll notice from their financial reports, TAVA has been adding to their cash reserves to cover "bad" receivables, which has the effect of lowering their EPS. These reserves give the CFO a great deal of flexibility. TAVA is in control of their destiny and managing expectations very well. This stock will continue to rise over time and if you look at the charts, any investor will see that these pullbacks are always short term. TAVA is a great long-term investment and institutions will continue to fall in love with it as TAVA protects them in the long-term. The Conference Call will probably be very exciting.