CNBC.com recently published an article by Keris Lahiff titled “Pinterest tops social media stocks this year, but another name could be best long-term bet” (https://www.cnbc.com/2020/08/04/pinterest-tops-social-media-stocks-this-year-but-another-name-could-be-best-long-term-bet.html).
In it, Lahiff states, “There’s an unexpected social media star this year. Pinterest (NYSE: PINS) has rallied 87% in 2020, easily topping Facebook (NASDAQ: FB), Snap (NYSE: SNAP) and Twitter (NYSE: TWTR).”
The article writes that “Ari Wald, head of technical analysis at Oppenheimer, said Pinterest’s momentum rally should provide more gains as part of a broader move higher for social stocks.” Wald states: “We’re bullish on that industry broadly – social media or, I should say really, technology…We think we are in a technology-led secular bull market.” In regard to Facebook in particular, Wald analyzes that “[t]he stock is not yet to the overbought range that has marked overbought in the stock’s history so we still see room to run. [Facebook is] a stock that has price momentum in a broadly strong group.”
The COVID-19 pandemic has accelerated trends of the population to work from home and shop online. Now, more than ever, online education and educational technology is in great demand. The pandemic has accelerated the digitalization process of classrooms and changed the education landscape indefinitely. As a result, COVID-19 has caused education technology or online education stocks to be one of the hottest areas to look at this year.
In light of Lahiff’s article, let us turn to the Ed-Tech sector that has benefitted during the pandemic, and in particular consider 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 inintelligent 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|
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