On November 12, 2020, Reuters.com published an article by Stephen Culp titled “Nasdaq surges as investors return to tech, crude ends off highs”
In it, Stephen Culp states, “Tech pushed the Nasdaq to close sharply higher and oil prices extended their rally on Wednesday, as hopes of potential COVID-19 were tempered by spiking coronavirus infections and the looming threat of a new round of lockdowns.
While the S&P 500 also advanced, the blue-chip Dow ended the session slightly in the red.
A return to technology-focused market leaders, which thrived during COVID shutdowns but sold off earlier in the week as investors pivoted to economically-sensitive cyclical stocks, put the Nasdaq out front.”
The article cites Keator group managing partner Matthew Keator as stating “that we’re back to tech has to do with its oversold nature and there’s a sense of safety in heavily capitalized technology companies.” Keator Group is a wealth management firm based in Lenox, Massachusetts.
Culp writes that “Hopes for an end to the global health crisis gained strength after Pfizer Inc (NYSE: PFE)’s announcement on Monday that its COVID-19 vaccine candidate, developed with BioNTech (NASDAQ: BNTX), showed a 90% success rate in preventing infection during trials.”
It is clear from Culp’s analyses that the ongoing COVID-19 developments have made tech stocks in general a highly profitable investment. Within tech stocks, however, it is the strong potential of the Ed-Tech sector that is worth noting in particular. Due to COVID, an overwhelming percentage of education has shifted indefinitely from in-person learning to online learning methods, Even with the development of the vaccine, there is uncertainty regarding when exactly the world would be able to safely return to full-scale in-person learning, as well as if many educators or students will even choose to do so. This has made Ed-Tech one of the most stable and attractive current investments. With this in mind, 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)
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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