The New York Times recently published an article by Matt Phillips titled “Small Tech Stocks Soar as the Future Arrives Early.”
In it, Phillips states, “The coronavirus pandemic has accelerated trends that were building for years by forcing large swaths of the population to work from home and shop online. And many obscure companies are taking off, driven by investors who expect them to flourish in an economy whose future arrived ahead of schedule.”
Phillips explains that “surveys conducted by Mr. Brynjolfsson [who Phillips explains is “an economist and the director of the Digital Economy Lab at Stanford University”] and economists at the Massachusetts Institute of Technology found that the share of Americans working from home jumped to about 50 percent this year, from around 15 percent before the pandemic…“We haven’t seen anything like it since World War II,” Mr. Brynjolfsson said of the broad work-force upheaval.” The education landscape can be similarly juxtaposed; with the unpredictable nature of the COVID-19 pandemic, an overwhelming number of students, teachers, and institutions have shifted or are in the process of shifting to an education environment at home.
Phillips goes on to divulge that “Zoom (NASDAQ: ZM) — the suddenly ubiquitous video conferencing service — has been an investor darling, up close to 500 percent this year as workplaces shut down. Peloton (NSDAQ: PTON), the home video cycling company, is up almost 200 percent amid widespread gym closures — and just added to its product line.”
Most importantly, however, Phillips emphasizes the positive influence that the pandemic has had on small tech companies in particular. He writes that “lesser-known companies are also posting eye-popping gains: Fastly (NYSE: FSLY), which sells services that enable faster delivery of increasingly complex video and gaming technology; Chegg (NYSE: CHGG), which offers digital textbook rentals among its education technology services; and Veeva (NYSE: VEEV), which provides cloud services to life sciences companies, including for management of clinical trials.” Specifically, Phillips shares that “Fastly (NYSE: FSLY) is up more than 310 percent this year. Zscaler (NASDAQ: ZS) is up over 180 percent. Chegg (NYSE: CHGG) and Veeva (NYSE: VEEV) are up 75 percent and 90 percent. In a tech universe dominated by Apple, Amazon, Microsoft and Google, the share prices of little companies you’ve probably never heard of are soaring.”
In light of Phillips’ 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|
(*Calculations are based on figures from Yahoo Finance as of Sept. 23, 2020)
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