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

To: Karl Drobnic who wrote (17162)	5/19/1998 7:00:00 AM
From: Phillip Kelly	Read Replies (1) \| Respond to of 31646

Karl, I am interested in writing calls but I was hoping for a pop to $13. What's you take on waiting for some news and a pop.

To: Karl Drobnic who wrote (17162)	5/19/1998 9:18:00 AM
From: Rick Bullotta	Respond to of 31646

Karl: Your numbers are consistent with mine, with two notable differences, which are mostly timing-related. The major one being the difference between "sales" and "revenues". While I expect sales to be strong, as you suggest, I do expect some significant lag between those sales and the resultant realizable revenues, thus much of it will go into backlog in Q4 and break into the bottom line the following quarter. I also expect that we will see a modest increase in SG&A related to sooner-than-anticipated hiring costs, opening up new offices, and ramping up the new higher-end consulting practice. Regds, - Rick

To: Karl Drobnic who wrote (17162)	5/19/1998 9:40:00 AM
From: Gerald Underwood	Respond to of 31646

Karl, Appreciate your analysis. I would like to add one point which is probably incorporated in your view, but maybe not. In Jenkin's estimate of $8-10 mil in new orders for the May period, which I presume you are using for your basis, there was also a caution that this did not include the follow-on work. This follow-on work has already had the sales work accomplished thus would not result in appreciable new sales expense for follow on revenue. Given this I can certainly appreciate your view that sales expense ratio to revenue will most likely continue to improve. IMO the synergies that have been created in the past months will start to come together for TAVA's bottom line benefit this quarter and next.