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Voted on a straw in #Bull Case for Ardent Leisure Group Limited by Chalky1610
6 days ago
#Bull Case

Wilson asset management significantly increasing their holdings in a company that they most recently promoted being Ardent Liesure (ALG) Wilsons believe that $100 million has not been accounted for in the share price for ALG themepark assets in Queensland and sees significant share price upward movement moving forwards. 

Voted on a straw in #Bull Case for QBE Insurance Group Limited by Chalky1610
3 weeks ago
#Bull Case

QBE not the sexiest of sectors insurance but with rates about to go up, you've got premiums going up, the writing seems to be on the wall for increased coverage which in turn places greater money into the back pocket of insurers. As recently reported in quarterly reports QBE has also streamlined its business model making it more leaner, meaner and thus, more profitable

Voted on a straw in #taxrelief for Lark Distilling Co. Ltd by RockHopper
2 months ago

From ABC Insiders this morning - a comment from Andrew Probyn suggesting the Federal Government might be changing the level of tax on whiskey in the upcoming budget.

Voted on a straw in #Conference Call for Janison Education Group Limited by elpaso96
2 months ago
#Conference Call

I took some notes on the call today, but before I started writing, I saw Matt Joas and an analyst from VGI Partners on the call. I think they are interested in the business and are doing further due dilligence before thinking about investing. Institutions are interested in Janison, hopefully having them on the register can improve the liquidity in the stock. 

Here are my notes: 

  • The OECD contract deliver the PBTS and management are confident that they can sign one country a month (imminently), although it will be lumpy and unpredictable. Currently 7 countries conduct the PBTS, so I am hoping another 7 countries by the end of this year. 
  • D2L second phase integration complete which means revenues should flow in 2HFY21. 
  • 1750 schools are doing the PISA test in Russia. The 1st year license revenue in Russia was $197K based on 80,000 students sitting the test. Russia was one of the early countries Janison acquired, and the agreement back then was revenue per student. I am not sure if they have changed the agreement to revenue per school, like with recent countries. A new PISA table will come when they announce the next country.
  • Management has reiterated their plan to expand ICAS internationally and are considering options. North America would be my pick but that would mean investing into sales and marketing. The ICAS test has incredibly high 80% gross margin, so it is extremely scalable.       
  • A unique aspect of the business is that gross margins are 2.5x higher from new customers. They dedicated a slide towards Gross Margin Expansion which will drive "value investors" over the moon. 
  • Interesting note on free cashflow. They expect positive cashflow in FY22. What that means, is that this financial year they reinvesting heavily into the business to build the infrastructure to scale. 
  • Interesting question on competitive advantage 
    • Deep relationships with customers since inception of the company. I wrote straws here on those relationships. 
    • The platform was created from scratch. Previous management team signed a development agreement with SEAB (Singapore Examination Authority Board) to build and stress test the Janison insights platform under high stakes Singapore exams. There was extensive testing done with a polytechnic university to create high pressure testing environment that does not breakdown. It will give confidence to future customers like (Universities, Schools and Professional institutions) to trial the Janison insight platform. The worst thing that happens to a customer is when an online testing platform breaks down half way through the exam. They need the platform to be reliable and soo far Janison have not had any issues.     
    • Product differentiation. From my interpretation, it means the platform is flexible. They have ICAS, and can be used off the shelf to multiple customers. The platform is hosted in the cloud so you have fast deployment to many locations quickly. 
  • One of the questions I asked was whether Janison have plans to set up a base in North America as it is one of the largest education testing markets: 
    • Janison at this stage not focused on putting working capital towards another beachhead. They are focused on building the partnership with D2L in America. 
    • The D2L/Brightspace integration have significant sales pipeline, so what I am thinking is that they are focused on getting revenues first before making decision to expand.   
  • The second question I asked was whether Janison have plans to use service providers like Benesse from Japan to expand into more tests and countries. 
    • Short answer is yes and that is the genius behind winning the OECD contract. Janison not only got their foot on the door though the PISA exam but they also won new relationships with service providers that operate in multiple countries with multiple customers. Through strategic partners like Benesse their cost to market entry decreased and speed to market entry increased. 
  • Other notable things
    • JEM will become a computer testing hub. This will be the case for the CFA exams. I should know as I am doing the exam :) Ironic that Promteric is the testing platform but JEM would be proctoring  (supervising) the exam.  
    • The learning business to grow single digits. I am not surprised and they have expressed their intention to focus on the Assessment business. They did win 3 customers, but it is not in their intention to grow Learning division. 
    • Before Janison the ICAS exam had a net promoter score of -60 (haha). The net promoter score is now 59 - no wonder they generated $4.8M in revenues.  
    • Janison is the NSP (National Service Provider) in the USA for the PBTS. Very interested to see how this progress as they are not using a third party to proctor the exam.   
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Voted on a straw in #ASX Announcements for Janison Education Group Limited by elpaso96
2 months ago
#ASX Announcements

Janison recently announced China is added to the OECD PISA based test for schools exams. They now have around 9 countries out of 90 countries conducting the benchmark test. China is apparently a large country with some of the largest education providers in the world. 

 Janison will not be the National Service provider, but they will be the technology provider. Now, if Janison was a normal technology business, they would have to compete with companies like Alibaba and Tencent to provide the infrastructure. However, as this is an OECD contract, China has no incentive to target technology providers as everyone receive the same benchmark report. Usually tech companies get wiped out by the large players, Janison is a rare case where that doesn’t apply. For the long term shareholder, we want contract to be renewed in 2024. If they can do that, then they will sustain their competitive advantage. 

The latest update on the number of schools that have already completed the PBTS warrants a revaluation of the business. A couple of years, management was targeting $100M in revenues by 2025 and I thought it was a joke especially with the new CEO. Now, not so much. More on that on the valuation update ;) 

Companies like Brainchip trading on future cash flows vs Janison who are  displayig their competitive advantage with the market oblivious. I’ll take Janison all day.

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