GREY:LGLTF - Post by User
Comment by
britishcinnamonon May 29, 2014 1:07pm
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Post# 22610850
RE:RE:Stop Worrying About the SP
RE:RE:Stop Worrying About the SP The current problem (from Q1E and Q4E) are the prepaid and pre-arranged advertisement fees. They cannot back out and are paying nearly $2M per quarter. Let's say that they get the ad fees down to $1.5M for Q2 and $1M for Q3 through integration of various promotions, then the net margin should improve some more. On Page 10 of the MD&A, it says that these commitments should be done by mid-2014.
Also, once the fat has been trimmed, there should be less accountants and administrative workers to pay.
More from the MD&A:
Page 4 - UIS wo;; be expanding to provide pathway programs (much like KGIC) to non-LOY students and to recruit Chinese students to increase market opportunities and exposure.
Page 5 - The franchise program has 4 licenses in place and has currently received $20,000 in franchise fees.
Page 9 - For those worried about AR and his competencies, revenues across all LOY brands have grown consistently with each acquisition. If you want to call his ability to make money into question, then please be coherent about it.
Page 11 - It could take between 9-15 months to integrate the brands fully. When that happens, KGIC, MTi, SEC, and UCCBT are going to contribute over $45M/yr in revenue. This suggests a fairly good Q3.
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From a Peter Lynch perspective, I see exactly the kind of company that holds the fundamental elements that make this company look interesting.