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Technology Stocks : edusoft (EDUSF) -- Ignore unavailable to you. Want to Upgrade?

To: Arch who wrote (164)	1/15/1998 12:47:00 AM
From: Frank Gasker	Respond to of 272

Arch, Thanks for the information. Alot can be said about the figures you've posted. In my opinion earnings for q4 above 1 mil. or .20/share and consistant with q2 and q3 should equal a $10. stock. At .20 it's a 200+ percent earnings improvement. It puts the trailing PE below 10 with Edusoft at 1.5 times book and heavily weighted in US cash. Find another micro software company with these fundimentals. Part of Edusoft's problem is the investment community can't believe Edusoft can make money in Educational software. It's the Dangerfield syndrome "no respect". Hasfari admits Educational multimedia software is a challenging market but Edusoft has succeeded because they have diversified with a global market and product offering. As the numbers you posted indicate, even with a depressed market in Latin Ameerican and no Asian market in 96 they still maintained profitability. Look at Logal Software another Isreali educational software company that tryed to develop a US (English) based market. Although they have excellent software this large but narrow market is highly competitive with large players. As Edusoft continues to expand these markets geographically, weakness in one will be madeup elsewhere. It wouldn't be realistic to expect consistent growth worldwide without fluctuations. .25 per share or better a slightly more optimistic estimate is certainly obtainable. We already know that Latin American is strong in q4. Rev. in East and West Europe for the last 2years have been healthy and I assume improving along with their economies. The US is seasonal and a tough but welcomed market for EDUSF. Asia is Edusoft's newest market it is not their biggest but right now it's questionable. It depends upon how intent these markets are to purchasing software at somewhat higher prices due to currency devaluations. It could be that the Asian populace possesses a strong enough desire to continue the effort toward ESL. One factor that may effect near term earnings will be the impact of development costs associated with the new children's ESL software. I'm not sure if these costs are capitalized or taken as accurred. frank