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

To: CalculatedRisk who wrote (20266)	7/9/1998 5:35:00 AM
From: JDN	Read Replies (2) \| Respond to of 31646

Dear Wily Willy: Obviously, even if TAVA achieves analyst's estimates for this quarter and next, their cash flow will remain heavily negative. Your assertion of accretive acquisitions, without further dilution or additional debt appears, shall we say "far fetched". Can you substantiate this statement in anyway? I hate to reply to your bullshit but this is so DRASTICALLY MISLEADING I feel I must for the benefit of the non accountants. Folks, management has stated that they will not be spending substantial additional monies on the Planty2kone tool as development is basically complete. Therefore only amortization of the deferred asset (a non cash expense) will occur from this area. It is true that in the INTERIM, during the RAPID revenue buildup it is QUITE possible that cash flow from operations MAY BE negative. Why? Because quite likely trade receivables and costs in excess of billings will likely increase from past qtrs when revenue was lower. FOLKS, this is a GOOD THING. It means SUCCESS! Mr. Willy would have you believe that its a bad thing. As to cash for acquisitions, I am quite sure that TAVA currently has there hands full and are not planning any imminent acquisitions unless they can directly support what is going on now. However, once Revenue reaches its peak THEN cash flow from operations will be very large indeed as that portion of the operation winds down. JDN

To: CalculatedRisk who wrote (20266)	7/9/1998 7:03:00 AM
From: Karl Drobnic	Read Replies (1) \| Respond to of 31646

Bill: You either believe that Tava has major engagements with Bristol-Myers, Boise Cascade, Polaroid, Coke(?), Merck(?), and the others we all know about, or you don't. I personally heard Jenkins outline his acquisition strategy in April, 1996, and observed him enact it. I've heard him update his vision in the interim and I've observed him hit objective after objective in building Tava. Think of it this way, Bill: There's a multimillion dollar jackpot waiting for you in a distant city. To get there, you have to spend a few bucks out of your pocket. Your credit card will have a debit on it for a while. The big contracts will bring TAVA a lot of profit, but Jenkins has to spend money to collect the profits. And Bill, don't forget that we're already up over 330% in Tava.