Penny Stocks Could Surge Over 300%

Look at China Education Resources Inc. (OTCQB: CHNUF)

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On January 12, 2021, yahoo.com published an article by TipRanks titled “These 2 Penny Stocks Could Surge Over 300%, Say Analysts

The article writes that “[r]isk and reward often travel hand-in-hand, making the stock market both lucrative and dangerous. Among the best exemplars of this axiom are the penny stocks, those equities priced at $5 or less. With that low price comes the potential for extreme gains, as even an incrementally small price increase will translate to a high percentage gain.

JPMorgan’s Head of Small and Midcap Equity Strategy, Eduardo Lecubarri, sees both the opportunities and dangers in the current market environment – and the great potential of small-cap stocks that have room to run.

‘1Q may be rocky following the strong gains since Nov and the fact that valuations are sitting on all-time highs. However, the year long outlook is encouraging due to far more powerful fundamental tailwinds. Such a positive backdrop is likely to keep investors chasing those few stocks that still offer big recovery upside, as they seem to have started to do YTD. It is for this reason that we would encourage investors to build their portfolios now and see things through in the event of any consolidation phase that may come in Q1,’ Lecubarri wrote.”

TipRanks recommended two companies: AcelRx Pharmaceuticals (ACRX) and NuCana (NCNA) and comments that “[w]e are talking returns of at least 300% over the next 12 months, according to the analysts.”

In light of the article, let us turn to another high growth tech area which has been benefitting tremendously from the pandemic: the Ed-Tech sector. In particular, let us consider the specific Ed-Tech value stock that is 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 $0.04 per share (P/S Ratio of 0.20, P/E Ratio of 2.0)

In comparison with CHNUF, the ratios of some larger education companies or organizations are as follows: *

1. Chegg, Inc. (CHGG)P/S Ratio of 22P/E Ratio of 5,375
2. New Oriental Education & Technology Group Inc. (EDU)P/S Ratio of 6.8P/E Ratio of 58
3. GSX Techedu Inc. (GSX)P/S Ratio of 84P/E Ratio of 700
4. TAL Education Group (TAL)P/S Ratio of 13P/E Ratio N/A
5. Genius Brands International, Inc. (GNUS)P/S Ratio of 42P/E Ratio N/A
6. Microsoft Corporation (MSFT)P/S Ratio of 11P/E Ratio of 35
7. NVIDIA Corporation (NVDA)P/S Ratio of 27P/E Ratio of 107
8. Zoom Video Communications, Inc. (ZM)P/S Ratio of 232P/E Ratio of 654
9. DocuSign, Inc. (DOCU)P/S Ratio of 40P/E Ratio N/A
10. Slack Technologies, Inc. (WORK)P/S Ratio of 19P/E Ratio N/A

(*Calculations are based on figures from Yahoo Finance as of Sept. 23, 2020)

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