On November 12, 2020, CNBC.com published an article by Yun Li titled “Global stock market value rises to a record $95 trillion this week on vaccine hope”
In it, Li states, “The total value of stock markets around the world reached an all-time high of $95 trillion through Wednesday, bouncing all the way back from its March bottom in the depth of the coronavirus pandemic…Stocks’ latest run to new highs was triggered by news that Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX)’s coronavirus vaccine was more than 90% effective, much better than health experts and the markets had expected.”
Li writes that “U.S. equities have led the comeback this year with the S&P 500 wiping off its coronavirus losses in mid-August. The benchmark hit another intraday record high of 3,645.99 on Monday as the promising vaccine news sparked a massive rally in cyclical names.
Still, the biggest driving force behind the seven-month rebound has been global central banks’ unprecedented easing measures as well as governments’ fiscal stimulus aimed at helping their respective markets and economy through the coronavirus crisis.
Central banks around the world have slashed interest rates to historic lows. The Federal Reserve launched an array of programs including an open-ended commitment to keep buying assets under its quantitative easing measures. The central bank’s “money printing” has flushed investors out of low-yielding bonds and into stocks…Following the big vaccine news from Pfizer (NYSE: PFE), many major Wall Street firms raised their outlook for the stock market, betting on a faster and smoother economic recovery. JPMorgan now expects the S&P 500 to rise about 10% to reach 4,000 by early next year with “a good potential” to move even higher to 4,500 by the end of next year — a 24% rally from here. Goldman Sachs also sees a gain north of 20% for the S&P 500 by the end of 2021.”
In light of the article, let us turn to a high growth 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)
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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