Epals Corp EPCPF

CC as expected-some very good results posted today

[shawshank]

taking out one time expenses from the CC-I will review in full later...some pretty impressive cost containment and on top of that revenue games-pretty much what I expected and hoped to see.

Off the top as I rushed for time today...they consider the company as a Intergrated K-12 (kindegarten to Gr. 12) Media company.

Their Digital Content Division is growing leaps and bounds...double digit growth here quarter over quarter-year over year and this is important cuz its a growing part of their revenue base-as existing players can ladder or bridge over their delivery platform in a big time way now that it is maturing...this will and is expected to add to the revenue base going forward.
 

They just received 4...count them (four) digital content awards in the best of the breed categories...this is great from a continual marketing perspective...they will leverage more from the McGraw Hill licensed content agreement as they move forward.


They have seen a reduction in churn of some whopping 33percent...they called it on the CC "reduced by a third" this is big-it shows user retention and the add on base of new subsribers was evident adding in excess of another 300,000 registered users this Q...given this is an education social media space that is not a insignficant number.

There was a lot more meat in the CC than I had expected...i will review it again later tonite or tomorrrow and refer to notes taken and post on it...but by and large-the recorded loss was flat once one time items are removed...they are starting to see economies of scale coming into effect on the revenue side of things while containing or curtailing costs-so the differences between the two lines of earnings and losses is narrowing moving forward-1st calendar q 2014 the effects of cost containment will be more prevalent was the commentary=-and they were very very bullish on todays announcement of the Chines market gains...I won't go into explaining the differences between a chinese domiciled company and a US domiciled company doing business in CHINA...the two are vastly differnt and the latter is much more favorable than the former...overall I was taken back by the sincerity and honsesty of management at OandD-very rare to find-full disclosure...you name it-these guys didn't hide and come across as very very honest people with a ton of their own skin in the game exposure wise.

That's preferable to me-than the latter ...cuz I want the principals interests lined up with my own...and in SLN it is.

I will continue to hold my position and add on any demonstrated weakness that comes into my existing average prce per share of .045.

The new CEO is going to turn a few heads this coming 1st calendar quarter of 2014.

Of that I am certain.

SS