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

To: JDN who wrote (27481)	2/8/1999 6:58:00 AM
From: Mr Logic	Read Replies (1) \| Respond to of 31646

JDN, the biggest benefits from integrating the supply chain down to the factory level come from such things as demand and capacity planning, MRP & MRP II, as well as Work In Progress, Bill of Material etc.. These are all common components of full ERP suites (again, if you include i2 or Manugistics). TAVA may be looking at an overambitious move... running before walking. If I were in their position I would look very closely at a two step approach, as there is one very natural area to move into - known generally as Asset Care or Maintenance Management. TAVA could look at implementation of these systems that optimise the use of plant floor (and other) assets. If they partnered with, say Indus (market leaders), it would be a good step into implementing high value software systems integrated with ERP systems, and would best leverage TAVA's existing skills. Hopefully management is smart enough to be looking/have looked at this. Check out indusworld.com (disclaimer, I recently bought into Indus having followed them for 12 months). On ERP, look at SAP and PSFT recent warnings & results to see where pure ERP market leaders are saying the market is headed. Look at BAANF or SSAX to see how the smaller players are already being hit. Personally I would not hold any of them for the next year - I would rather sell them now and buy back the survivors in Q2 2000. If it is 401k stuff and you don't want to touch it, hedging with puts would be a good move IMO. On your earnings growth point, it is difficult to judge. Without adding more employees, they will hit the ceiling when all engineers are highly utilized at a good rate. (I'm not forgetting other earnings, just that y2k consulting is most of it right now).