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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

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Post by StompinTomon Feb 24, 2015 12:36pm
173 Views
Post# 23459335

Back of the Envelope Value

Back of the Envelope ValueSo I figure:

181m o/s shares + 6.8m for 2 SK acquisitions + 22.3m shares for PP = 210m shares

EBITDA Q3/14 = $1.9m, with next to no growth is $8m annual

EbiTDA Uhak = $1m/annum, mgmt estimates $2m

EbITDA SK#2 = $0.9m/annum, mgmt estimates $2.1m

You have an estimated EbITDA of $10-12m per year or $.047-.057 per share.  You have a relatively cheap valuation here and it excludes:

- growth and scaling
- monetization of the real estate spinoff
- whatever the money being raised is being used for

Not a bad margin of safety and worth revisiting after the vitriol I've seen here. 
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