Craig--
I posted this on RB, but I think it seems to fit in here, too.
Well, for today anyway, the downside support was 2. That is reassuring, since tech. analysis seemed to point to a different number if we broke below 2 3/8. But TA on BB stocks is notoriously incorrect, as they are subject to too many whims, IMHO.
Thinkology and the K-8 line alone make this a $3 to 3.50 stock NOW. We're likely to see at least a quarter a share in earnings this year with just those two product lines, and that is before I hear about any more Value Added Resellers signing on to sell HeartSoft's wares.
The Australian VAR is on line, and sales for Thinkology are growing...the good news we received from 1/14 'til last week laid the groundwork for, at a minimum, .25 eps this year. With a PE of 30, HTSF will be a $7.50 stock. Is HTSF only worth less than 1/3 of that now because of fear?
KIWE....I won't discuss its ramifications. It's still pie in the sky, and until it is available to the public, talking about it is idle speculation. I will say this: Without KIWE, this company is an excellent investment NOW. Not in six months, not in one year, now.
But we are looking at maybe another three weeks 'til the 10QSB's from last year are released. If people are selling because of that delay, well, I feel that is punishing the company for weighing its priorities as it did. Ben chose to delay the 10Q's rather than put out doubtful numbers. That the stock got beaten down because of a brave decision is not how I choose to see it.
The transaction log tells us that a little over one THOUSANDTH of one percent of shares outstanding (9,800 shares) more were sold than bought today, yet we are down 16%? The market makers are free to treat BB stocks as they see fit...but this treatment seems fairly ludicrous.
But am I afraid? Not in the least. I have my eye on the goal, and today, nor the rest of this week, will alter the overall outcome for HeartSoft and its stock.
Projection based on Thinkology: $1,000 per school site license. 38,000 school districts in U.S., possibly 75,000 or so schools that might buy Thinkology. Lowball guess at 20% market penetration for a superb product, and you have 15,000 schools, or around $1.5m in revs. With an 85% profit margin, that is .185 earnings per share, add another .04 for the K-8 line, and toss in two pennies for Australia. There.... 24.5¢ per share in earnings, and software companies typically earn a 30 to 40 PE...give HTSF a PE of 30, and you have a $7.35 per share stock.
I am not the only one who can do the math....a 10,000 share buy came through today that didn't make the ask go up one penny. Is that person upset to be down on their investment already? Maybe, but if they can see the future as clearly as I can, then they will laugh off these MM scare tactics and tuck those shares away for the future.
Holding every share I ever bought!
Cheers!
Rick
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