Bob,
after reading your updated report about tasa, it is not clear for me what basically has worsen in their fundamentals leading you to revise your target price from 2.5$ to 1.6$-2$. In your earlier review, you didn't have included the positive effect of bookmatch (because the service was not installed up to this time), despite this additional positive effect outlook has somehow worsen. As far as I remember your EPS for the current year was revised down from 0.12 cents to 0.05 cents.
You wrote:
"
I know that a number of investors are concerned about this loss, so I placed it there as the headline. I would like us to "get it out
of the way", so as to look beyond it. Then hopefully we can begin to understand what TASA really accomplished during 1997,
and how these accomplishments actually affect the Company's potential in 1998 and 1999.
This $1.4 million loss was entirely the result of a series of accounting adjustments", some of which were required by Generally
Accepted Accounting Principals (also known as GAAP), and others which were made because they would be beneficial to the
Company in future years. These accounting adjustments were "non-cash", in that they do not reflect actual cash payments made,
or debts entered into, by the Company in 1997. It is these adjustments, however, which unfortunately mask the very real
strengths of the Company."
if I understand correctly: These accounting adjustments lead to a worse result in 1997 and should improve results in the following years?
But this accounting adjustment was not included in your earlier report, what means that the results for the following years should be even better than predicted in your earlier report?!
Again the question why is your price target revised down then?
Maybe I simply didn't see the answers in your report, but I am still on the way to interpret such reports correctly.
Thanks Ralph |
