Pennystock.com recently published an article by D. Marie titled “Esports Penny Stocks Show Immunity To Coronavirus.”
In it, Marie states, “There are two things we definitely know right now. First, penny stocks are where retail traders are focusing. Second, COVID cases are going up.” Marie points out, “While there are plenty of people looking for the next round of coronavirus penny stocks to buy, others are trying to read between the lines.
… [T]here are people looking for new trends before they actually become the main focus for retail traders. Of course, we’ve seen a surge in biotech stocks this year. That’s understandable considering the race to find a vaccine for coronavirus. But don’t forget that the last 6 months have also produced big wins in other sectors too.
Ever hear of Genius Brands (NASDAQ: GNUS) ? I’m sure if you’ve been trading penny stocks it’s either something you smile about or are absolutely ticked off about. Needless to say, it was once a stock trading under $1, it ran up to over $11 and now sits around $2.30. This and other entertainment companies rallied strong in May and June. Some say it may have been due to investors searching for companies that could benefit from stay at home orders.
In the case of Genius, there were other things that came to light. But the case was made for “alternative coronavirus stocks”. Similarly, in March and April we saw a rise of interest in food delivery stocks. Companies like Waitr Holdings[NASDAQ: WTRH], Blue Apron [NYSE: APRN], and GrubHub [NYSE: GRUB] began rumbling and once the mass markets figured it out, shares exploded.”
In light of Marie’s article, let us turn to the online eduycation sector that has benefitted during the pandemic, and in particular consider an education company: China Education Resources Inc. (“CHNUF”). CHNUF is perfectly poised to cater towards the intensified e-learning market demands which have arisen as a direct result of the COVID-19 pandemic. Based in Vancouver, Canada, CHNUF is a publicly-listed ed-tech company (TSX-V – CHN and OTCQB – CHNUF) with leading technology in intelligent system and contents. It provides online/offline learning, training courses, and social media for teachers, students and education professionals; these are all increasingly integral aspects of education in the contemporary era. CHNUF has 2 million kindergarten through twelfth-grade teachers registered through its web portal in China.
CHNUF’s online education platform and services provide a vertically blended learning, teaching, research and management system for a student-teacher-school-parent community. CHNUF’s products and services facilitate a significantly more efficient and enriched virtual educational experience for both teachers and students, most especially during a time when online education has become the backbone of many societies around the world. In combination with the circumstances and demands which have arisen as a result of the COVID-19 pandemic, we believe that China Education Resources’ numerous attributes will provide the Company with great long-term revenue potential.
CHNUF has 47,364,983 common shares outstanding. CHNUF generated US$9,390,402 revenue in 2019. CHNUF made US$978,466 net income in Q2 2020 (earnings per share $0.02).
China Education Resources Inc. (CHNUF) current price is $0.032 per share (P/S Ratio of 0.16, P/E Ratio of 1.6)
In comparison with CHNUF, the ratios of some larger education companies or organizations are as follows: *
|1. Chegg, Inc. (CHGG)||P/S Ratio of 22||P/E Ratio of 5,375|
|2. New Oriental Education & Technology Group Inc. (EDU)||P/S Ratio of 6.8||P/E Ratio of 58|
|3. GSX Techedu Inc. (GSX)||P/S Ratio of 84||P/E Ratio of 700|
|4. TAL Education Group (TAL)||P/S Ratio of 13||P/E Ratio N/A|
|5. Genius Brands International, Inc. (GNUS)||P/S Ratio of 42||P/E Ratio N/A|
|6. Microsoft Corporation (MSFT)||P/S Ratio of 11||P/E Ratio of 35|
|7. NVIDIA Corporation (NVDA)||P/S Ratio of 27||P/E Ratio of 107|
|8. Zoom Video Communications, Inc. (ZM)||P/S Ratio of 232||P/E Ratio of 654|
|9. DocuSign, Inc. (DOCU)||P/S Ratio of 40||P/E Ratio N/A|
|10. Slack Technologies, Inc. (WORK)||P/S Ratio of 19||P/E Ratio N/A|
(*Calculations are based on figures from Yahoo Finance as of Sept. 23, 2020)
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