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

To: Manzanillo who wrote (29844)	3/29/1999 11:44:00 AM
From: B.D.Bauden	Read Replies (2) \| Respond to of 31646

I'm convinced now that being bought out is the best thing that could happen to the share holders.

To: Manzanillo who wrote (29844)	3/29/1999 12:44:00 PM
From: Bonzo	Respond to of 31646

Subject: Price/Sales Valuations Date: 3/25/99 8:37 AM Pacific Standard Time From: Bonzo3 Message-id: <19990325113721.01056.00000042@ng-ce1.aol.com> Last year, TAVA's Software marketing partner Wonderware, was bought out by Siebe PLC. These were the terms of the agreement: IRVINE, Calif.--(BUSINESS WIRE)--Feb. 24, 1998--Siebe plc and Wonderware Corporation (NASDAQ:WNDR) announced today that Siebe has entered into a definitive agreement to acquire Wonderware for $24 per share in cash, or approximately $375 million. The company reported record revenues of $82.5 million for 1997. Sale price based on trailing revenues we have: $375M/$82.5M = 4.5 P/S ratio A 4.5 P/S ratio would support Ed's contention (Ed you should be doing this) that TAVA could fetch a buy-out price of $27/share in FY, 2000 TAVA's FY,99 projected revenue = $120M x 4.5 P/S = $540M/26M out = $20.75/share TAVA's FY,00 projected revenue = $156M x 4.5 P/S = $702M/26M out = $27.00/share (with 30% growth rate) However, the Siebe buyout of WW did not disclose that Wonderware was on a >$100M, 98 revenue run-rate ($82.5M in sales was year end 97). Therefore, Siebe was essentially paying <3.75 x sales for WW based on '98 revenues. In addition, Wonderware was more product oriented (automation software) than service oriented, which normally would justify a higher buyout price. At 3.75 x sales, a number I am more comfortable with in valuing TAVA, we have: 99 revenue: $120M x 3.75 = $450M/26M = $17.30 00 revenue: $156M x 3.75 = $585M/26M = $22.50 TAVA's current price: $5.25 Price/Sales Valuation on FY 99 revenue: 5.25 x 24.2M = $127M Price/Sales mulitple: 1