edusoft (EDUSF) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : edusoft (EDUSF)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: David Howe who wrote (183)	2/23/1998 11:09:00 PM
From: Frank Gasker	Read Replies (1) of 272

David, thanks frank A couple of the less the desirables on Edusoft Fundementally, it would be tough to condemn Edusoft. Software companies historically command realitively high ratios. High margins beget high earnings therefore software companies can suppport high PE multiples. Edusoft has been able to uphold these characteristics in 98 but the market has not recognized this (yet). These I feel are the basis of some of Edusoft's displayed weakness. 1. Small is out. Big is in Micro-caps even good ones with solid balance sheets suffer from a bad image from smart money and sophisticated investors. They are associated with the rouge investor, speculators and those of limited means. Until Edusoft reaches a higher capitalization this will continue. 2.Poor liquidity is not a good quality in the present market. Low float is a 2 edged sword. When in supply/demand low float supports rapid movements. up and down 3.Information on micro and small caps are limited. This however is changing rapidly with the Internet. Foreign companies like Edusoft are still NOT providing information on a timely basis. Ex. Most profiles on Edusoft indicate the offices of Edustar (USA affiliate) in Florida. It's been moved to Herdon Va along with new management about 18 mo's ago. There is virtually no information on Edgar for Edusoft or many other foreign concerns. Their reporting requirements differ substantially from US based companies. Although q4 has been reported, expect to see a 10k no sooner then July. Huh, It will be released along with "My First English". 4. 1997 quarters were being compared to some of the worse in Edusoft's history. The easy money was made then. Comparable quarters for 98 go against a powerful performance that was cultivated to provide an awakening. The traders and speculators that fueled high volume days are unlikely. Edusoft needs to sell themselves on stability, consistency and growth. This is tougher than surprises. 5. In my opinion, Revenue growth will be the primary force to future performance. Margins are already greatly improved. The way to a bigger bottom line diverts to top line growth. This growth is more externally dependant then margin improvements. Hasfari has shown he can "run a tight ship" as he stated in the C call. Now he must captain that ship on a global tour tendering software. None of the above is beyond good management and a good market. Edusoft has both.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next