To Wes (part 2): Let me give you a "bankable" example of what THE largest and fastest growing educational software publishing company in our markets history, Jostens Learning experienced in their first 24 months or so:
(Now of course this story is third-hand, but in general it exemplifies our strategy)
Jostens Learning spent millions developing the FIRST integrated learning solution (a lab full of computers in the school with several thousand reading and math lessons covering every subject roughly for K-5)
The first year out, Jostens could barely give the product away - schools knew they needed the technology and the score improvements which resulted. However, the pressure on Jostens (which was originally a small private company) by its shareholder's was immense, and rumor was that then company president nearly fired certain top sales individuals who several quarters later were producing record sales for the company. The problem which Jostens faced, the "penetration" curve as I refer to it, is similar to the difficulties HTSF faces short-term. Although the schools wanted the product, they had to jump through state and federal funding program hoops to "release" funding or the "new" technology solution.
Sales the first full year out are purported to be in the low 7 digits and a little more than 12 months later, were in the 8 digits. Once Jostens had "filled the pipe with sales (large school sales average about 6 months), their revenues climbed over 8 years to about $180 million.
So, finally, while my personal balance sheet would far prefer seeing the stock price much higher -- we have elected to spend the money which would be needed to move price up by temporarily increasing share volume on TANGIBLE product and market resources which will generate more stable long-term results for our shareholders.
My personal opinion is that Thinkology has created such an opportunity that Heartsoft is literally a NEW company - we are going to market with a brand new product which offers a solution unavailable for competitors. With the strong push (soft word for the efforts), we will begin to see Thinkology adopted in districts and schools all over the nation over the new few months.
I hope that our goals continue to fit your portfolio's mix.
(One last story, in 1992, after researching a small local book publisher who was introducing a SIGNIFICANTLY new marketing concept for an existing product line, I purchased 2000 shares of their stock at $1.60 - a bargain I felt. 3 and 1/2 years later, after huge, huge success (which started slow but grew constantly) I sold my 2000 shares at $22.5 --> the stock hit $26 bid a few weeks later. (I know of no other opportunities which have afforded the financial return of a small company staying focused and making it work.)
I write to you from the office of my 2 year old home, twice the size of my previous home, nearly 40% paid for because of one stock that I trusted and believed in.
I hope only the same and the best for all of our shareholders. I hope this helps a little Wes. Next week I will begin a semi-weekly email letter to shareholders which will discuss the small progresses our team is making week to week.
Benjamin
P.S. These comments reflect much of my personal opinion as an investor and not as CEO or shareholder in HTSF. I know our SEC attorney (after his coronary) would want me to state this fact succinctly. I or Heartsoft am not responsible for any investment in Heartsoft based upon my personal comments!! BPS |
