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

To: John Hanzl who wrote (23396)	9/23/1998 9:55:00 AM
From: Wally Mastroly	Respond to of 31646

biz.yahoo.com

To: John Hanzl who wrote (23396)	9/23/1998 10:12:00 AM
From: Rick Bullotta	Respond to of 31646

I had a strong suspicion this was going to happen...the runup pre-earnings presented a great profit taking opportunity (I hope you all did! <g>) and the poor earnings report will provide plenty of chances for those who want to buy in at lower prices (hovering in the $5 range for a while). Pitiful, awful earnings. Excellent revenue growth. But guess what folks, earnings is what matters given the short opportunity to cash in on Y2K. Sorta reminds of the old "yeah, we lose a penny on each unit, but we make it up on volume!". <g> There is no excuse to not be putting serious earnings numbers on the board at a revenue run rate of $60,000,000 (should have been well in excess of the $0.04 target, approaching $0.10). And don't forget, TAVA is expected to post earnings numbers in the $0.25 range per quarter for the next fiscal year! Just how is that going to happen "overnight"? They're already bandwidth constrained (tough time finding enough engineering resources), so I'm not sure how much of the remediation work they'll be positioned to take on. Remember that in about 5-6 quarters, it is back to the significantly-lower-margin systems integration work, so the time to cash in on the opporunity was now. Going to be VERY hard to get a high share price valuation for earnings that are of such short duration as those in the coming quarters. Needed a longer pattern of high profitability to command the big numbers. Not going to happen. Period. Another blown opportunity, time to look for another. Hello, ITWO!