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Microcap & Penny Stocks : Sanctuary Woods recent sale, should you own the stock?

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To: Ed Newman who wrote (83)12/19/1996 3:19:00 AM
From: Jamie Westock   of 341
 
I think SW reached bottom back when the Nasdaq delisting occurred. If it was going to fold, it would have been then. Since that time there's been a lot of progress. The thing I like is that management has formed a strategy and is singlemindedly pursuing it. If you track SW's activities since it reached bottom you can see the improvements. First, excorcised all entertainment-related activities, assets and expenditures. Got more funding, new bank loan terms. Formed outside management council with education-focus individuals. Launched new on-line website. Added two new senior staff with resonsibilities for new education product and business development.

The current stock price is not reflective of the potential here. That said, there's still a long way to go. Right now the consumer level PC marketplace is really, really tough. So we're seeing consolidation in both the hardware and software companies. Hardware clearly is getting very commodity, but the good news for SW is that as we move forward, and with the growth of the net, content is what everyone will be after. If SW can continue to build it's portfolio of content AND get it more broadly distributed and demanded, it'll do well.

To get back to your question with a direct answer, SW won't be folding. Regarding the future, I think it's a positive indicator and statement of belief in SW's strategy "from the inside" that SW was able to attract the two high-caliber execs. I'm sure they evaluated the future prospects before making the decision to join.
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