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Good Analysis, Bob......I bought TASA over a year ago based on what I felt to be a good analysis of their fundamentals and direction of business and growth rate and opportunity.....these factors, in my opinion combined to give TASA a great chance to appreciate in value greater than the other investment choices I had reviewed to that point in time.......Since the purchase, the company has grown as expected, diversified in an unexpected direction, filtered less of the revenue increase to the bottom line than I would have liked, moved from a loss in earnings for fiscal 1997 to positive earnings in 1998, added a partnership with an investment banker, and dropped in share price by about 60%......So, the fundamentals have improved substantially year over year.....the book of business has diversified and revenue has increased 38%......they are taking steps to ensure continued listing on the NASDAQ......they have acquired one school and put in place the financial ability for at least one more acquisition.....If the stock price begins to reflect the greatly improved value, then the reverse split will create future opportunities for purchases using stock rather than other financing......The investment banker's influence will presumably have a positive impact on cost reductions and net profitability.....Therefore, if I liked the company a year ago, and if my decision was based on rational analysis of fundamentals, then I made a good choice then, as long as my time horizon is long enough to allow the market to eventually price the increased value appropriately.....I am going to remain as fully invested in TASA as I am now (17,000 shares).....I would buy more, but, I must diversify a bit just in case I am wrong about the likely outcome.....keep up the good work, I enjoy reading your analyses, they provide me with a good reality check on my own due diligence |
