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Technology Stocks : edusoft (EDUSF)

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To: Frank Gasker who wrote (64)8/20/1997 8:53:00 AM
From: H.J. Schellenberg   of 272
 
Frank: I am in three stocks; EDUSF, HURC, and CDWN.

All three stocks are different and I own them for different reasons. However, I expect all of them to go up a lot this coming year.....

EDUSF ($8.50/share) - We have discussed this one already. I look for big earnings increases in the next 2 qiuarters to boost the stock to the $15-18 range within 6 months, with some expansion of the P/E to 20-24. Technicals are very nice.

HURC ($6.75/share) - P/E is currently 5 on this one. They will win more lawsuits and/or go to settlement with the companies who infringed on their technology. I expect them to be a slow internal grower, but reap $5-7.00 in settlement money over the next 2 years. Let's call it $30.00 in two years, with P/E expansion to 10-15. Technicals excellent.

CDWN ($9.00/share) - IPO'ed in March at about $9.50. Has a 5-year, exclusive agreement to rubn off-track-betting and operate a horse track in Virginia; the first time this state has had betting on horses since the 1800's. CEO plans to open up to 200 of these 90% margin OTBs throughout the state over the next 5 years. Already wildly profitable. Call it $35-45 in one year with a P/E of 30. Technicals very good.

You might note that NONE of these three stocks was touched by the recent market downturn. Volume just dried up and the stock sat where they were. I love that!
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