Frank,
I've put more thought into how Edusoft can get their stock price fairly valued. [Picked a fine time to write this, since the stock tanked today - currently recovering to about $4. :)]
I really think there are two items the company should address. Both have to do with raising awareness of the company/stock in the U.S.
1. Reporting. To my knowledge, the only thing the company reports to the U.S. SEC is the 20-F, which is an annual. Quarterly reports are available via Edgar and therefore aren't available to many of the online stock services, brokers, etc.
In fact, I wrote MarketGuide (which Yahoo uses to report stock info) yesterday asking why there is a dearth of information about Edusf and the response was the company is not required to submit quarterly information and therefore there's not much information that can be shown.
Addressing this issue by filing quarterly reports to the U.S. should fill this void. 10-Qs would be ideal, but if there's a similar report geared for non-US-based companies that would suffice for a while. I realize this is not a requirement for Edusf, but I believe it's a step the company must take to increase awareness (and, in turn valuation) of it's stock.
This will raise awareness mostly with individual investors and hopefully some brokers.
2. Raise awareness with fund managers, institutional investors, brokerage houses. I believe as a prerequisite, #1 will have to be fulfilled before this step can be accomplished.
I'm not 100% sure how the company would go about this. I imagine directors of the company or of the board would need to come to the U.S. and visit many of these entities personally. Making this trip twice a year, visiting five to ten entities each time should do some good.
Those are my recommendations. Financially the company is doing well. Revenues are increasing, gross & profit margins are good, expenses are under control. The stock is incorrectly valued. There's not much more from a "company performance" perspective that can increase the stock price. In my mind, getting a correct valuation on their stock is purely a marketing issue.
bobs. |
