Bullboard - Stock Discussion Forum KGIC Inc LGLTF

Consumer Defensive Education & Training Services

"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."

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KGIC Inc > Revenues will plunge

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Post by Papagallo on Jun 09, 2015 4:21pm

Revenues will plunge

News travels quickly...Asian parents will not enrolled their kids in an organization that is facing bankruptcy. Company MUST be sold, recapitalized, and rebranded...equity investors are screwed regardless.

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Comment by JeffCourteau on Jun 09, 2015 4:50pm

Where do you see or when have you heard them talking about bankruptcy? You don't go bankrupt instantly before giving the new management team a chance to fix things up. I mean, they absolutely have clients (excellent revenue), they have a plan for student housing, and news of this bad management won't spread that much in Asia. It's just like if we cared here about a minor Chinese ...more

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Comment by Papagallo on Jun 09, 2015 5:05pm

The most recent equity raise was a sham...money was intended as working capital to fund growth acquisitions not paper over poor judgement deficit spending. Company is in debt, no cash, breach of covenant. Students and their parents will not place deposits for enrolment with a company that faces bankruptcy and shareholder class actions. Lawyers will be salivating.

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