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Technology Stocks : edusoft (EDUSF)

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To: Chris Belk who wrote (168)2/8/1998 10:41:00 PM
From: Arch  Read Replies (1) of 272
 
Chris,

I have a few observations concerning the movements of EDUSF's price:

(1) It's true that EDUSF's price has always increased around the time of releasing earnings in the past year (mid Feb., May, August, and Nov.). This is due to two factors: EDUSF's earnings have been consistently good; and there are short-term speculators who want to make a quick profit by trading EDUSF around the time of earnings report. I will not be surprised to see the same pattern in the next two weeks.

(2) The stock price has DRAMATICALLY increased from low levels of 2-3 last spring. Those who bought the stock then have made a lot of money. In my view, their gradual profit-taking has helped keep the stock at sub-10 levels. However, with time, there are fewer and fewer stock holders who are happy to (or can) take profits at sub-10 levels.

(3) If the earnings for this and next quarters are as good as we expect, I am optimistic that we will see a large and sustained increase in stock price in the next 3-6 months.

(4) The sell of DEGEM shares will then be resolved once the market (along the buyer) is convinced of EDUSF's sustained earnings capacity. The sell will in turn boost the price and possibly absorbs the price (if it turns out to be an acquisition).

(5) In summary, the stock is a good prospect for short-term buyers (who like to gamble) as well as long-term buyers.
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