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

To: John Mansfield who wrote (21338)	7/29/1998 5:32:00 PM
From: Josef Svejk	Respond to of 31646

Humbly report, John, how TAVA invests the cash is definitely important to the company, but I'm not sure it is the key to the TAVA stock valuation, 'til maybe far in the future. Look at IMRS, SYNT, CBSL, COGIF, etc. All report great earnings quarter after quarter, all are investing their cash in non-y2k business to take them into the post-y2k future, and what's happening to their stock price? tscn.com Something stinks in y2k stock land. I have no idea what it is, but I don't believe investors are now looking at the undefined future. It seems to me that very hard realism of the present has set in. And no, I'm not short any stocks - yet! Cheers, Svejk abitare.it

To: John Mansfield who wrote (21338)	7/29/1998 5:57:00 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 31646

John, please allow me to correct two errors in your post (and Joe's): 1) Joe assumed Y2K revenue to be cash. This is not correct. Even "after tax profits" are NOT cash ... but probably close enough for this discussion. 2) What TAVA does with any Y2K cash is irrelevant to the current evaluation of TAVA ... unless you have insider knowledge of where they intend to spend the cash and have performed DD on that new investment. This is a fundamental tenet of finance and economics: Cash is cash! Regards, Bill

To: John Mansfield who wrote (21338)	7/30/1998 11:42:00 AM
From: Mark L.	Respond to of 31646

"<<The key to TAVA's future valuation is how that $100M or $200M in Y2K cash is invested>> Joe, This is a proper way to discuss TAVA. However, don't expect an answer from th shorts on the issue of re-investment, and of making money from earned money (e.g. through acquisitions). John" Let me give you a little anecdotal evidence in this regard. A month ago I was competing with a Y2K company to buy a company in a non-Y2K field. They ended up paying TWICE what I and my partners were willing to pay. Look, the acquisition company was an interesting company with a potentially bright future, and it may work out well for the Y2K acquirer. However, I couldn't help but get the impression that there was an element of desperation in the way the Y2K company was valuing the business: like they had to spend the money on something hypeable in order to keep their falling stock valuation afloat. This is, of course, just one anecdote and has no statistical validity. Also, the Y2K company was not TAVA. However, it's food for thought. If TAVA acts like this other company, they may be successful, but they will not be playing the odds. And, in general, it will be interesting to see if the market for acquirable, high-tech companies starts getting bid up (from its current high level) by Y2K acquirers.