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Microcap & Penny Stocks : TASA. Can someone with KNOWLEDGE help!!!! -- Ignore unavailable to you. Want to Upgrade?

To: tom r. phillips who wrote (369)	4/16/1998 7:46:00 PM
From: Thomas Kirwin	Read Replies (1) \| Respond to of 601

Great Work Tom! Tom, Looks like all valuation models point to a much higher stock price for TASA: Drake Business Schools Valuation Investors can now hang their hats on the value of this deal and the underlying value of TASA's core business divisions. The current stock price of $1 1/16 does not reflect the full worth of TASA based on future earnings. IMHO expect the share price to continue its climb leveling off at $1.50 until the closing of the deal on June 30, 1998. Thereafter, the price may jump another $0.50 or $0.75 reaching $2.00 - $2.25. Of course the 2nd quarter earnings release for April could accelerate the increase when announced sometime in May or June. Stock Price Valuation Based on a reasonable PE of 15 Touchstone's stock would be fairly valued at $2.10. This simplistic valuation approach does not take into consideration the projected 350% three year growth or future earnings potential of BETA and MLP. $0.14 eps * 15 pe = $2.10 Stock Price These assumptions and projections will most surely change once TASA files the acquisition details regarding Drake Business Schools with the SEC. Based on the industry PE of 35.9 Touchstone's stock would be fairly valued at $5.03. This simplistic valuation approach does not take into consideration the projected 350% three year growth rate or future earnings potential of BETA and MLP. $0.14 eps * 35.9 pe = $5.03 Stock Price Phillip's Valuation Model re. IBD's industry average P/E and more napkin math April 9th's edit. of the Investor's Business Daily featured Sylvan Learning (SLVN) and included summary table for IBD's "Commercial Services -- Schools" group. of 21 companies listed, EPS and PE were reported for 16: avg. PE of the 16 companies = 54.8 avg. PE of 14* companies = 39.6 dropping 2 "out-liers" with PEs of 144 and 177; range of the remaining is 21-68. $.14 eps est. 39.6 = $5.54/share Regards, Tom