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Technology Stocks : edusoft (EDUSF)

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To: edwin k. who wrote (12)2/28/1997 11:29:00 PM
From: Frank Gasker   of 272
 
Edwin,
Although I have not purchased any of Edusofts products, there website does a fair job at describing detailes about them. You can also get an idea of their interactive courseware Mathmatics and General Physics via the" Virtual Classroom" at the site. Registrate is easy enough it's free and works well. I though the quality of the courseware was good and freindly.
I share your enthusiasum about the future of Edusoft and the computor as an educational necessity. I am equally causious.
Record revenues for q4 indicate that an unturn in business may be underway.
some of my likes (and dislikes)
+'s
1. trading below book value, current assets at 13 mil with a quick ratio of 6/1.
2. has remained profitable even as revenues flattened
3. markets worldwide and therefore can focus in areas where growth looks promising. They shifted to Asia when latin sales sourered. Now they have a presence in asia and latin america is rebounding.
4. Improved US management. Steve Niederman of Edustar has experience in educational software marketing and was invovled with the turnaround of Edunetics (unaffiliated) before it was sold.
5. New courseware product "Hotelier" targets the hotel industry which has huge training budgets. Tough to get in but any deal could boost profits.
6. Q1 and Q2 96 were disappointing at best. comparisons could easily be eye openning


---'s
1. liquidity could be difficult
2. inconsistent in revenues and earnings, no real growth
3. difficult to obtain information especially interim
4. sketchy relationship with parent company DEGIM

With 2 sequential quarterly improvements, I feel Edusf is showing signs of a turnaround. Since info is tough to obtain, recommend talking to management and getting an investors package from
Cynthia Demonte 212/473-3700

gfrank
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