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Saturday, 01/06/2007 1:36:45 AM

Saturday, January 06, 2007 1:36:45 AM

Post# of 585
TASA.OB My Pick For 2007

The Things I like about TASA.ob.

1) Business should not be adversely affected by a downturn in the economy.

2) Valuation: Stock is cheap, if my assumptions are correct then they made about .20 in q3, which means .57 is what they earned in 9th months if my numbers are correct. I expect the company to experience solid growth in the coming year. The PE if we annualize the .20 estimate is about 8 so it is cheap in my opinion if my analysis is correct.

3) PE Given? Because of the attractive industry I expect a 15-20 PE to be warranted here once the story gets out. So around .80*20 PE gives me a $16.00 stock. Now currently the stock is priced at $6.50, so that is some significant upside appreciation from here.

4) Technically: The stock currently has support at $6.00, and resistance is around the $6.75-6.80 level. One problem with evaluating technicals on this company is it simply doesn’t trade enough. Which is one of its issues, but I believe the stock will be found, and the volume will flow through, after the profits from the acquisition become more obvious to everyone.

My Two Concerns:

1) The Balance Sheet is a little weaker then I would like. Although I believe they will be fine because in time there future profits will fix the balance sheet.

2) Stock Volume is not the greatest. This stock has days where it doesn’t trade a share, and you could fit a truck in between the bid and ask. Now I believe volume will flow through the stock once it is discovered, and I believe that will be very soon, but time will tell on this one. The reason why I picked this though is this is a more long-term contest, and I believe in the long-term this stock will hit it’s full valuation, which would mean significant upside is ahead in my opinion.

Disclosure: I own some share of TASA.ob, and Think it is one of the few great buys in this market. All above is just my opinion, and I could always be wrong though.

---All above is just my humble opinion.
And I could always be wrong.
And as always do your own DD.---
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