In every aspect of life, the corrupt try to get their piece of the action. I've always assumed there is a lot of hanky/panky going on with the market. Money attracts the corrupt.
Regardless of that, since I've followed TLC, I've felt that Wall Street is punishing TLC for it's aggressive takeovers and for it's falling out with analysts over the future "negative" direction of retail sales, for which TLC was correct.
The debt load, $480 million at 5 1/2%, is a huge bargain for TLC. Right now, in this negative atmosphere, if TLC had to do financing, they would have to give a much larger payoff than 5 1/2%. If I were them, I wouldn't pay off any of the debt, unless they start making gang-buster earnings and their stock price starts to climb.
In order for TLC to be more successful, the market for Educational Software needs to pick up. With PC sales seeming to slow down, there has got to be something that draws more buyers. Perhaps some of the following:
1. Foreign Sales pick up some slack from domestic sales due to TLC's expansion overseas and new coversions of TLC products to foreign languages.
2. Retail/Direct Sales might slow until prior to the new school year, where they should pick up due to new products, etc.
3. Clinton/Gore push for computers/Internet in classrooms.
4. Should be an increase in use of Internet Based products.
5. Some growth in DVD and MMX purchases.
6. Their 6 new "to be" releases and other recent releases spur sales.
Anyone have any other ideas about "what else could cause increased sales?" |
