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

To: fma who wrote (27416)	2/3/1999 4:39:00 PM
From: JDN	Read Replies (2) \| Respond to of 31646

Dear fma: Whether or not he were to buy the shares in the open market he still has to have them allocated to the Options plan. That requires shareholder approval to get favorable tax treatment. However, I would think the most immediate use of cash would be to repay all debt outstanding. I have noticed the most successful TECH companies dont seem to have any debt. After that, I would think he may purchase smaller entities who have something TAVA needs. Clients arent probably that important anymore as TAVA has its own Gold Plate Specials. People and knowledge are probably what he will look for as well as geographic representation. Share repurchase plan probably down on his list of priorities but when TAVA can afford it it sure would be nice to have some type of repurchase plan in place, if for no other reason than to thwart the MM's when they begin to play games. JDN

To: fma who wrote (27416)	2/3/1999 6:05:00 PM
From: Karl Drobnic	Read Replies (1) \| Respond to of 31646

As a fiduciary for we, the shareholders, JJ has an obligation to use the money prudently. If the share price is low relative to the profit the company is making (divide estimated earnings by price: $1/7.50 = 13.3% after tax), then buying back the shares is the prudent use of the money. But as shares are bought back, eventually the share price rises, and alternatives to share buyback become equally prudent. So JJ could make the case that acquisitions were more prudent than share buyback since he could show more long term bang for the buck if acquisition by TAVA can add "synergy". And I'm assuming that TAVA's first use of the cash will be to pay back any high priced debt it possibly can in the very near future.