Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: gamesmistress who wrote (12180)	7/2/1998 11:27:00 AM
From: CalculatedRisk	Read Replies (2) \| Respond to of 13949

Gina, re:TAVA. G: "So it's true that the Plant Y2K One maybe accounts for about 4% of the revenue, but look what it's bringing in with it." I agree that the CD helps get consulting work ... great for TAVA! But being a consulting company limits their growth and that is the basic argument against TAVA; they will never generate enough FCF to justify anything near their current market cap. G: "How do you know TAVA keeps most of these in inventory?" This is partly information I received from Wonderware and partly supposition (I didn't walk through their warehouse<g>!). From Wonderware: they have only shipped a small fraction of the tens of thousands of CDs TAVA has produced. For TAVA, use your numbers and calculate TAVA's revenues if they had shipped these CDs directly ... so, since they are not shipping, my guess is they are still in inventory. G: "Talking to current users and people who looked at it and decided not to use it would indeed be helpful, but I'm not sure how to go about it." I just started calling around. Try calling TAVA and asking if you can get a demo ... or calling one of their known customers. BTW, when I talk to a customer (or potential customer) of a Company I am thinking about selling short, I am careful to say nothing negative about the Company or the product. OT: Not all information is on the net. You have to call around and sometimes travel. Last year, I got on a plane and flew to San Jose to visit Zitel and MatriDigm. The plane ticket was only a small fraction of my profits ... a very worthwhile excursion! G: "As for the tool's usefulness, Coca-Cola and Boise Cascade, among others, don't agree with you." Actually, IMO they do agree. TAVA has some impressive consulting clients. But as far as I can tell, none of the clients just bought the tool. They hired TAVA for the consulting. Regards, Bill