On November 21, 2020, CNBC.com published an article by Ari Levy titled “Tech companies are lining up to go public — here’s what we learned from the most recent wave of IPO filings”
In it, Levy writes that “tech investors have plenty of reading to do over the Thanksgiving holiday in the form of IPOfilings. DoorDash, Airbnb, Affirm, Roblox and Wish all unveiled their prospectuses in the past eight days, with plans to go public before year-end.
They’re taking advantage of a post-election rally that’s lifted U.S. stock indexes near record highs and a clear demand in the public market for high-growth investments.
All five companies serve consumers and can expect a busy holiday season in the face of surging coronavirus cases and a drastically altered economy. It’s a very different slate of entrants to the market than the previous rush in September, when a number of enterprise software companies like Snowflake (NYSE: SNOW) and Palantir (NYSE: PLTR) made their debuts.
They each have distinct narratives tied to the coronavirus.
DoorDash revenue more than tripled in the third quarter as many restaurants turned to delivery as their primary source of business. Kids gaming platform Roblox reported 91% revenue growth in the most recent quarter (measured vs. last year), as it benefitted from school closures and more users looking for ways to stay entertained away from their friends.
Affirm, which offers point-of-sale online loans for consumers buying apparel, electronics, home goods and other items, almost doubled revenue in the latest quarter as people increasingly turned to the internet for their purchases. Wish, an online discount retail marketplace, is also benefiting from the ecommerce boom…Airbnb is the company most hurt by the pandemic, which has flattened the travel economy. But it’s found a niche in combining vacation homes with remote work and is positioning itself for an economic rebound.”
In light of Levy’s 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 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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