Tom,
Two points....
First, frequently, companies are contractually prevented from publicly naming specific clients, the size of contracts, etc. in press releases. This is true of MTY, TRNT, and ADTC, as well as TASA. When I was responsible for investor relations, I often tried to clear the release of information about a particular client relationship, and was prevented from doing it by our contract with the particular client. Often I tried to get approval from the client for a release but was refused; my Company's investor relations needs were of no interest to the client.... and it used to p--s me off.
Re the BETA contract releases from TASA, I know for a fact that doallar volume information cannot be released because the State's Departments of Education do not want it released. Frankly,I asked this question previously.
Whenever I hear about "expected orders" or "pre-orders", especially in a press release, my "BS Alarm" goes off loudly. I've seen too many releases, which talk about "what will happen tomorrow, or the day after..." I just don't believe them, unless I am able to verify them independently.
Secondly, when I see that there is real demand for a product (especially when this is reinforced by a legal requirement), the funding is available to buy it, and there is a lack of "supply" for the product....I get a bit more optimistic.
California is annually spending $152,000,000 on "core materials" such as what TASA is offering (in addition to another $50,000,000 to train teachers to teach phonics). If only 2% of this "core materials" funding is spent on TASA products, it will more than double Modern Learning Press's anticipated revenues. Given MLP's historic margins, a good percentage of this should fall to the bottom line.
Bob Davis
The Napeague Letter
napeague.com |
