On January 19, 2021, yahoo.com published TipRanks’ article titled “RBC: These 2 Tech Stocks Are Poised to Surge by Over 40%”
The article writes that “say ‘COVID-19’ in a group of mixed company, and you are sure to spark a debate. But one thing is certain: The way our white-collar sector works has changed, perhaps for forever. Canadian banking giant RBC is calling it ‘Work 2.0,’ the sudden surge of telecommuting, remote work, and virtual office options that has impacted many desk and office jobs.
Describing the phenomenon, RBC analyst Matthew Hedberg believes that these remote work strategies are here to stay, and that an array of tech companies stand poised to gain from this expansion of the knowledge economy.
‘As companies adapt to major structural changes with regard to how, when and where knowledge workers get business done, we see secular demand for these technologies supporting a long-term, durable growth narrative for nearly all modern vendors in this space, informing our call that is essentially a doubling down on the space,’ Hedberg noted.”
TipRanks mentioned two companies in the article:
Datto Holding (MSP)
“Datto Holding is a software company, offering IT products to the growing MSP sector. The company’s software offerings include cloud and SaaS products for network management, remote monitoring and management, professional services automation, and basic workplace functions such as file backup, protection, and syncing. And
VMware, Inc. (VMW)
“VMware is another software company. VMW exists in the cloud computing sector, providing cloud and virtualization services for x86 architecture. The company allows customers to run apps on any device through a common cloud platform.”
In light of this article, let us consider another area that those looking to invest in tech stocks could 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 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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