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


To: JDN who wrote (24844)11/17/1998 9:23:00 AM
From: Karl Drobnic  Read Replies (1) | Respond to of 31646
 
JDN: I agree that TAVA's current price is preposterous based on the $50 million or more profits they are likely to rack up over the coming two years. Given TAVA's very improved balance sheet, that $50 million can probably be invested in new businesses that will add $500 million to sales and also be accretive to earnings. If we add $500 million in sales, and assume a net profit margin of 7%, TAVA's $50 million in profits will then be producing $35 million/yr. in profits. TAVA's been pretty clear about its plans to grow, it is certainly going to get the opportunity, and the growth track record is already good.