Last week, CNBC.com published an article by Sam Meredith titled “‘Learn to live with the pandemic’: Physicians warn that a vaccine may not prevent Covid from becoming endemic”
Sam Meredith reports that “more than 41 million people have contracted the virus worldwide, with 1.13 million deaths, according to data compiled by Johns Hopkins University. Many governments, too, have sought to help the Covid-19 vaccine race by providing funds to allow companies to scale up manufacturing even before drugs have been approved.”Meredith discloses that “Dr. David Heymann, who led the WHO’s infectious disease unit during the SARS epidemic in 2002-2003, believes some governments may be over-reliant on the development of a vaccine at a time when effective communication, diagnostic testing and outbreak containment activities are all critically important tools.”
The article further outlines Dr. Heymann’s ruminations on coping with the COVID-19 pandemic, and quotes Heymann as stating, “The difficulty right now is that in many countries, they are looking forward to a vaccine which may or may not come, which may or may not be effective in the short or long term, and they are looking at possible therapeutic (options) which could solve many of the problems…But, that’s not a good way to proceed at present…We have to learn to live with the pandemic.”
Adapting to a new standard of ‘normal’ has resulted in a largescale shift towards a largely virtual, online work culture. In “Distributed Companies, Work From Home, And The Technology Enabling The Change” (https://www.forbes.com/sites/danielnewman/2020/10/22/distributed-companies-work-from-home-and-the-technology-enabling-the-change/#7843526633bf), Daniel Newman notes that the previous standard of mandatory in-office employee presence is being dismantled in favor of allowing employees to work remotely instead. In the case of Google (NASDAQ: GOOGL), working from home has been permitted until July 2021, while in the case of Facebook (NASDAQ: FB), this has resulted in a permanent change: it will never be mandatory for a employees to physically work from Facebook offices again. Similarly, Microsoft (NASDAQ: MSFT) is offering employees the possibility of working remotely even after in-office work is safe again, and employees are also able to request a new work location.
It is clear that COVID-19 has accelerated the societal transition towards a more virtual, technologically-reliant lifestyle; this can be seen in the upward trend of working from home, online shopping, and the digitalization of classrooms and lecture halls. Because of this accelerated digitalization, online education and educational technology is in greater demand than ever before.
In light of both Meredith and Newman’s articles, let us 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.
Newman surmised that companies which already had the infrastructure and culture in place for individuals to work virtually before the pandemic are notably more poised than others to adapt to the post-COVID work environment. CHNUF’s extensive experience as a long-time pioneer within the online education sector would firmly place it in this category. 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 $0.03 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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