Frank,
EDUSF did not rise with the market today. Nor do I expect it. Run up of mall cap stocks often lags that of large caps. If the market stays this good, we should expect action for EDUSF soon.
We are about 2.5 weeks from the next earnings's release, if my guess is right.
It was this time last year (5/13) when EDUSF surprised the market with a very strong earnings report for the first quarter of 1997. It reported revenue of $3,009,000 with earnings 0.10 a share. The share price quickly went up from about $2.5 to about $6.00. From the CC, past earnings reports, and communication with Cynthia DeMonte, it seems clear to me that the 1998 first quarter revenues and earnings should easily exceed those of 1997. If that expectation materializes, we can expect a quick recovery from the drop related to the last quarter's report. How much higher? $10 is not an unrealistic number (I like it, anyway). One uncertainty that has been removed is that, it seems that Degem will not sell its stake in EDUSF unless it receives a premium price on the market. Based on PE valuations and potentials for growth, EDUSF is currently extremely cheap.
Due to the high likelihood that a run up is going to happen after May 12 (my predicted date of earnings release, I even venture to speculate that a pre-announcement run up is going to occur in the next two weeks. We will see if my speculation is going to hold.
Given the current price levels, EUDSF is a stronger stock than ever. I have been accumulating and holding tightly my shares. |
