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

To: Arch who wrote (227)	7/7/1998 8:17:00 PM
From: Frank Gasker	Read Replies (1) \| Respond to of 272

Arch, It appears the release is not being seen as a trading event. It is actually rather foretelling. I think your first reaction is the most significant; above the actual dollar value. < It shows that officers at BIRD like the concept of MFE and the product.> I agree, this grant signifies approval of the MFE product commitment by Edusoft. To investors, it's a guarantee of present development costs against future revenues at 5% upto 150% of amount granted or about 1 million dollars (over some unknown time). BIRD selects projects that present a likelihood that the grant will be repaid and they expect it. It insures they retain their nest egg.(i couldn't resist) So, let's do the math. 5% of what number is 1,000,000 thats umm... 20mil. So BIRD is paid up at 20mil revenues. In itself means little, its just simple math but here's the infered math. I think there was an article in the Globe last year stating Edusoft had paid BIRD 1 million from their revenues for the first grant (English Discoveries) Given simular terms that would mean English Discoveries breached 20mil in sales in 97. Now i'm not sure when it was released but 94 is my guess maybe 93. So 3-4years equals 20mil and 96 was Latin America's crisis and sales were weak. My guess is anticipated revenues for MFE is 20mil in 3 years. The press release states 2mil+ CD's in 3 years for English Discoveries. It has been suggested (based upon inquiries to edusf) that My First English could outdo English D. So 99 We could see about 6mil boost in revenues to lets say 20 mil. At present margins we're about 1.00 /share earnings. So edusoft has a forward PE on 99 earnings of 6. Arch It's my gut feeling that this represents a crude but attainable business plan for Edusoft. And if Hasfari can deliver 4 to 5 million a year earnings and investors don't wake up, I hope he distributes .50 per annum dividend every year. That would really mess up the value searching data-bases. Maybe it'll be mistaken for a utility. For what it's worth, I'll offer my opinions on management and other things got plenty pent up during the dry spell.