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Technology Stocks : The Learnings Co./Softkey = Merger Mania

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To: Paul Frantzis who wrote (24)12/10/1996 12:34:00 PM
From: steve host   of 58
 
Paul - I have been following this stock for awhile and it's really hard to read, but one thing I can tell you they have yet to diasappoint investors when it comes to earnings and generally the stock always moves strongly up earnings time. The way I see it, the stock is way undervalued. It should be at least above 30. I bought the stack last Spring at around 16 ave price and sold it a couple months later at 28 (after watching it first fall from around 26 back to 17, where I bought more). I bought back in this past Summer at around 20 and have held it since, watching go up to 25 3/4 only to fall where it is. I also just bought more at 15 yesterday and intend to hold to at least 25 maybe 30 a nd evaluate selling it (depending on if I have the time to trade it).

In sum this stock is a good trading stock, but it also is doing a fantastic job selling its product at a great profit unlike any of its competitors. THat being the case, assuming things don't change (and their recent 10qs only have gotten better) It's also a great long term investment.

THe way I see it this stock should be up in the 40s and once they show that they are paying off the debt (which their recent 10Qs have been indicating), the stock will be in that range.

For now I think this stock is moving back to the 25 area very soon (4 weeks) with the earnigns release, so I would hold.
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