Questar Assessment Inc. (fka QUSA)

[MikeDDKing]

Wade re: EPS estimate for the next four quarters...

I've been doing some further DD on this stock and I agree with your EPS estimate of $0.90-$1.00 in earnings for the next four quarters. I would probably make the range bigger and call it $0.80 to $1.20/share but I think we are in the same general ballpark. Some of the major drivers to the higher end include the following:

- They have been investing heavily in sales and marketing recently. In the conference call I heard that they are currently bidding on $100M worth of contracts which is huge for a company of their side.

- As they integrate Questar, they will be able to have some savings as they eliminate redundant operations. It will take some time for them to work this out and there could be some hits due to things like severance costs. However, in the long term it should lead to increased profitability.

- They have done 3 acquisitions since January of 2005. I would not be surprised if they do further acquisitions. In the near term I wouldn't expect another large acquisition as it will take some time to integrate Questar. However, I wouldn't be at all surprised to see another acquisition in 6 months time. How any future acquisitions impact the bottom line is hard to predict. One good thing is that from the looks of the Questar acquisition, they know how to make acquisitions that are acretive to EPS!

Mike