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

To: JDN who wrote (16969)	5/15/1998 9:34:00 AM
From: Roger Lovett	Read Replies (1) \| Respond to of 31646

JDN- All I was doing was doing some simple math in my equation w/o getting into details of billable hrs, cds sales and etc. Will try to come up with a more detailed model when I have time. You must use 25 mil shs not the 20.5 that Kevin alluded to the CC. 25 is the fully diluted and must be used for EPS estimates. I see TAVA doing 20-25mil in Revs this qtr MAX!!!. Even with all that you stated in CD sales, the additional people hired, OT and etc, there is no way in hell that they can improve net margins to the level required to make .14. If they do 25 mil in Revs Net margins would have to improve from 2.5% to 14% in one qtr. IMO this is an impossibility. JJ even said that SG&A will remain high but will be reduced % wise as REVS increase. IMO net margins should increase into the 5-8 % this qtr if were lucky. At 8% (High est) on 25mil REVS, w/ 25 mil sh gives .08 est. Would like some more detailed estimates if anyone has them. Please share.