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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 BlueHorseshoe13on Nov 18, 2015 5:23pm
350 Views
Post# 24302862

RE:RE:RE:WE need this increased volume-good sign

RE:RE:RE:WE need this increased volume-good signGood post.

Stockhouse: fix this board please and let the "pumping accumulators" in.

I'd say that on top of RJM buying into the company big time, the balance of the story checks out.  Basically, there are two scenarios:
  1. a year from now the company exists, and the share price is likely north of 0.30.  That's based on revised earnings forecast (which mean nothing), the structure of the options issued this summer, and my gut.
  2. the company is thrown into CCAA before then, and it goes to zero.

At six cents, that's a five-up from here.  A ten dollar bet pays out 50, or 0.  That means that you need to more than 80% certain that the comany will fail for this to be a "bad buy" at these levels.  
I just don't see it.  Recapitalized through insiders, check.  Developed stay period with lenders, check.  Turfed mgmt dead weight, check.  Attracted credible "institutional" investors, check.  Sold underperforming assets, check.  Reduced OpEx, check.  Maintained revenue, check.

Certainly seems like this name is not fully valued at these levels.
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