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Microcap & Penny Stocks : Sanctuary Woods recent sale, should you own the stock?

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To: Taku Utsumi who wrote (19)9/25/1996 12:52:00 AM
From: Kent Kuo   of 341
 
I have to agree. I was skeptical that CW could pull off another
private investment in SW. However, I don't think their focus is on
the home market as much as the educational market. They have
dramatically trimmed their operating costs to roughly $450K loss
in a quarter from $3.5-4M a quarter. Granted this also pulls them
out of the entertainment market, but I think the competition there
was too competititve to actually make money.

Their latest 10Q suggested that they weren't going to make it unless
they got some breathing room (time) and external funding to do a
better job with marketing. From there they will see sales improve and
make a real profit (if their products continue to be well positioned).

Quite frankly I think they have a good line-up of name brand products
that might interest kids....especially male children (NFL Math I & II),
Major League Math, and Grand Prix Math. Its nice to see them continue
the Franklin series and expand the NFL into reading.

I think that as long as CW continues to progress, she will be able
to turn this into a profitable venture that will look attractive
as a buyout. Remember, that is what she was hired to do and I expect
that she will now be able to accomplish this. Also, their $1M got
extended from Jan. 97 to April 97. The terms of the investment were
over three years and looks real good from my vantage point. Definitely
better than a company that looked like it was going down for the
last time.

Thanks, Kent.
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