Stocks in such high demand there aren’t enough to go around

Look at China Education Resources (CHNUF)

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On January 8, 2021, CNBC.com published Kevin Stankiewicz’s article titled “There’s not enough stocks to go around” — Cramer says that’s a key factor in market rally”

The article writes that “the stock market is off to a strong start in 2021, after robust gains last year despite the coronavirus pandemic. According to CNBC’s Jim Cramer, one reason for the continued rally in equities is, simply, a lack of people willing to sell.

‘There’s not enough stocks to go around,’ Cramer said on ‘Squawk Box.’ ‘The stock market is reflecting the strength of individual companies. There are 500 companies in the S&P Probably 400 of them are doing better than we thought’ they would be doing during a pandemic.”

“People want to own stocks and there is not enough stock. There’s just not — not yet.”

“It’s not 1998 or 2000,” Cramer said of the current market rally during the pandemic. “If you get the economy open, then you’ve got the Disneys (NYSE: DIS) of the world flying. And as the economy stays closed, you’ve got a whole bunch of stocks, the Amazons (NASDAQ: AMZN), flying. There is a lot of stuff flying.”

A lack of investors interested in selling stocks is helping propel the market higher. The investment landscape during the COVID pandemic has been unusual, saying “there’s no playbook.”

In light of this article, let us consider one specific area that those looking to invest in stocks should focus on: the Ed-Tech sector. In particular, let us consider the specific Ed-Tech value stock that is China Education Resources Inc. (“CHNUF”). As part of a high growth tech area which has been benefitting tremendously from the pandemic, 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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