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

To: JDN who wrote (27412)	2/4/1999 6:03:00 AM
From: Mr Logic	Read Replies (2) \| Respond to of 31646

JDN, the difference between private and public valuations and senior management's liking of good looking share options explains how you could make cheaper acquisitions privately. But fundamentally if you are paying 10% of sales, no way are you going to get a company already in good shape, making money. And companies in bad shape don't tend to hang on to the good people, particularly in a good market. I just thought the argument was optimistic by an order of magnitude. We know so little about the Mangan acquisition (other than that it is taking a long time!). In a year's time, give or take, TAVA has to get 500 people doing something at least as profitable as Y2K work - not the low margin stuff they were doing in the old days. If they are supply constrained, the top management focus really needs to be on this transformation, allowing middle management to maximise Y2K money. Share price growth comes from earnings. They depend in this case principally on profitability x employees.