Frank,
Many thanks for your thoughtful post. I did listen to the recorded conference call. You asked good questions.
I am, too, impressed by Menachem Hasfari. He was right in pointing out that EDUSF products are unique in that they appeal to the masses in different languages. If a hardware vendor wishes to bundle a software to the international market, EDUSF products are well positioned. Their bundling deal with Creative Labs is one such example. Once DVD is popularized, I see EDUSF products as ideal candidates for bundling in the international market (since they currently take many disks). Many many softwares take up more than 2 CDs today? Plus, one should not dismiss the possibility that a larger software company (such as Microsoft or Broderbund) may acquire EDUSF in order to penetrate the international market. If EDUSF does everything on its own, I agree with you that it may take 2-3 quarters to completely win investors.
The data about institutional players are interesting, and somewhat reassuring. I agree that Fidelity Low Price Fund is unlikely to unload its holding any time soon. (Its newly acquired shares, which are majority, should average around $8, right?)
I also agree that EDUSF is severely undervalued at the present. The price may go lower due to the selling by speculators. Also remember that EDUSF (like other Israeli stocks) has been negatively affected by the Iraq situation, which is now being resolved peacefully.
I am again holding my shares tightly. |
