TRO Learning (tutr) Message Board

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Technology Stocks : TRO Learning (tutr)

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To: 4-UR-Eyes-Only who wrote (57)	8/17/1997 2:16:00 PM
From: Stratajema	of 93

In the past I too have gotten excited when a company I liked used words like substantial and dramatic in their press release. This can certainly be considered positive news. But here is a quick-n-dirty game to play to judge the effect of a resulting, substantial increase in revenues. Using TUTR's 2nd quarter gross margin and operating expenses, let's say revenues increase next quarter by $4 million, up 45% sequentially over the 2nd quarter. This would be very significant, but the proforma numbers reveal they will still post a loss. Brian mentioned the gross margin on software sales is very attractive and it certainly is excellent. But sales still have to increase significantly before the company becomes profitable. And those pesky installment receivables give me the creeps since there is always the possibility they might have to sell a few of them at a 'hefty' discount to raise cash. Once again, this is a very rough analysis and these projections certainly do not mean the stock price will go down. I tend to be overly conservative when viewing companies so consider my opinion lightly. Good luck to all with your trades.

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