Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bob Davis who wrote (573)	1/20/1999 12:44:00 PM
From: TimbaBear	Read Replies (1) \| Respond to of 601

Good Analysis, Bob......I bought TASA over a year ago based on what I felt to be a good analysis of their fundamentals and direction of business and growth rate and opportunity.....these factors, in my opinion combined to give TASA a great chance to appreciate in value greater than the other investment choices I had reviewed to that point in time.......Since the purchase, the company has grown as expected, diversified in an unexpected direction, filtered less of the revenue increase to the bottom line than I would have liked, moved from a loss in earnings for fiscal 1997 to positive earnings in 1998, added a partnership with an investment banker, and dropped in share price by about 60%......So, the fundamentals have improved substantially year over year.....the book of business has diversified and revenue has increased 38%......they are taking steps to ensure continued listing on the NASDAQ......they have acquired one school and put in place the financial ability for at least one more acquisition.....If the stock price begins to reflect the greatly improved value, then the reverse split will create future opportunities for purchases using stock rather than other financing......The investment banker's influence will presumably have a positive impact on cost reductions and net profitability.....Therefore, if I liked the company a year ago, and if my decision was based on rational analysis of fundamentals, then I made a good choice then, as long as my time horizon is long enough to allow the market to eventually price the increased value appropriately.....I am going to remain as fully invested in TASA as I am now (17,000 shares).....I would buy more, but, I must diversify a bit just in case I am wrong about the likely outcome.....keep up the good work, I enjoy reading your analyses, they provide me with a good reality check on my own due diligence

To: Bob Davis who wrote (573)	1/21/1999 12:17:00 PM
From: TimbaBear	Respond to of 601

Some thoughts on 10Q98.....I have just finished my first study of the report....I am not a professional analyst, just the average schmoo on the street so my attempts to decipher the numbers have taken me about 4 hours so far....Revenues are up 37.7% year over year....however, some of that is due to having a full year of MLP revenues on the books rather than about 70% of revenues for FY97....It looks like receivables are up about 60% year-to-year....This is not always a healthy sign, but in this case I think it is just because catalog sales are up sharply and there is some delay in that purchasing method that may be the cause of the increase....I don't understand how they calculate the value of the non-compete valuations in the assets column, but they are similar year over year, so the impact is negligible to me....It looks as though they "booked" the Elley financing proceeds and costs....therefore the current assets are not as high as they seem to be but then the current liabilities aren't as high either, it looks like the net cash situation is basically unchanged from FY97 when these numbers are backed out.....The biggest area of concern for me is in the "General & Administration" costs which reportedly are up 63.5% year to year.....However, a deeper analysis appears to give me a plausible and acceptable justification for this.....First, in 1997 TASA was only able to book 42% of MLPs expenses, MLP revenues are 34.7% of total revenues, therefore MLP expenses (if proportionate) would be $908,804($2,619034 X 34.7%)and 42% of that would be $381,698; meaning that about $527,000 of the increase in G & A was not really a reflection of increasing costs as a percentage of revenues.....these increases appear to account for the sharp rises in Q1 and Q2 G&A.....the increase in Q4 G&A appears to be mostly related to the M&A costs surrounding the Drake and Elley transactions....therefore, it seems as though the clearest indication of how G&A is increasing is given in Q398.....when compared to Q397 this shows an 18.6% increase.....as long as sales increases are more than the basic increases in G&A, then it looks as though profitability will increase from here because the overall charges against revenues appear to now be fully accounted for.