KGIC Inc LGLTF

RE:Excellent News, disappointing market reaction

[Hawkeye2012]

I am not surprised by this reaction. It could have gone either way. Informed investors will be well aware of the implications of this acquisition. At first glance it appears a good move but there is a reason why schools don't buy agencies. I belive this is an act of desperation on the part of the CEO.

"No schools want to sell to us so lets buy an agency and we can send students to our own schools."

I wonder what the other agencies, which are the life blood of any private ESl school in Canada, are gonna think about this? 

This a Korean Agency. It makes you wonder how bad is LOY's relationships with Korean agencies that they have to buy an agency to get students to come to their schools.

I highly risky move, one that even the most desperate ESL school never take.