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


To: Roger Lovett who wrote (16971)5/15/1998 10:12:00 AM
From: JDN  Respond to of 31646
 
Dear Roger: As I said, I dont wish to argue about this. I am NOT privy to what is going on at the Company, I have no inside information nor any ability to converse with management. I am merely taking the numbers as presented at the CC and working them through. The difference between your theory and mine is that you feel each incremental sales $$ is the same as the base sales $$. I am saying this is wrong, why? Because outside of Direct Labor cost much of the rest of the cost is FIXED. Ie Administrative costs, amortization and depreciation costs. Thus, I am treating the 3rd Qtr as the Base Period and only working with the proposed incremental. Interestingly I feel sales will be lower (18,000,000) for the quarter than you. If you prefer to use the 25 million shares fine, that changes the answer to 12cents plus 1 cent or 13 cents. Not so far from 14 cents is it? JDN