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Technology Stocks : The Learning Company (TLC) -- Ignore unavailable to you. Want to Upgrade?

To: Obewon who wrote (6022)	11/6/1998 11:08:00 AM
From: Irwin Ma	Read Replies (3) \| Respond to of 6318

Since Paul disappears, someone has to be negative to keep things interesting. The following is a brief digest of the data from some of the analysts' report. The increases in year over year comparison is: sales 50%, gross profit 48%, EPS 48% while share outstanding 59%. In other words, TLC paid more in terms of new issues of shares to achieve growth. The increase in net income (131%) may be attributed to more efficient operation and "other incomes". This has some boosting effect on the EPS and further reinforce the buy to grow thesis. The stagnation of spending in R&D may be interpreted negatively also. If TLC's financial statement is cleaner now, it may make some sense to spend more in R&D in order to generate more Humongorous type of best sellers in the future. Finally but not lastly, the convertible shares of $191 millions is still greater than equity shares of $172.9 millions, which means high leverage. It would be more comfortable to see the opposite. Hey, that's all I can come up with for now. Don't blame me, I just cann't generate a tone as nasty as Paul's. Irwin