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KGIC Inc LGLTF

"KGIC Inc is an educational organization based in Canada. The company owns and operates private English as a second language school, career colleges and community colleges in Toronto, Vancouver, and Victoria."


GREY:LGLTF - Post by User

Comment by ROIcrusaderon May 28, 2014 11:03pm
216 Views
Post# 22608272

RE:Can Someone

RE:Can Someone48c at open to 51c at close, I'd say that's a pretty strong day, but I'd rather not focus on day to day price fluctuations or strong qtr/weak qtr. Here's the annual numbers:

~15m Revenue ~1.6m Income x4 = 60m/yr R 6.4m/yr N and positive cash flow is good (8m/yr).

6.4m / ~111m share base = .057 c/share earnings ... x 10 PE gives you a valuation of 57 cents. (expand that to a grow multiple of 14 and ya got an 80c valuation).

Still a show me story, institutional investors want to see that the growth and profitability are sustainable without dilution. Don't be surprised if the 8m cash flow per year can buy 16m/yr revenue, they've done some interesting vendor financing arrangments that are quite favorable.

There was a $500k restructuring expense (a .083% blip on 60m annual revenue). Said former executives were compensated handily for their work in building their schools.

https://www.bnn.ca/Video/player.aspx?vid=368907

Look at 32m in the video, like this guys approach; have added a few of his recommendations to my watchlists.

Use your own judgement; even a broken clock is right twice a day.

glta

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