To your comment: "Management really messed up with their revised strategy and spent too much. I actually do not mind the company using R&D to improve the product or even create new products. It is the best use of capital. However, acquiring assets with payback period greater than 3 years made no sense (especially the AAS acquisition). Also, just personnel changes in the company where they hired directors with no incentive to grow shareholder value was really annoying. They were basically given stock options for getting a job..."
It is worth noting that multiple acquisitions and large share based compensation packages are a common theme across businesses brought to market and influenced by Bombora Investment Management. Mike Hill (MD of Bombora) is the JAN Chair and fellow director Brett Chenoweth also has ties to Bombora. It is neither an absolute good or bad thing, but whenever I see them on company boards, I usually assume the business will be acquisitive and always mindful that SBC will be on-going.
Moderately interesting Stockhead Interview with Wayne Houlden, vice chairman and founder of Janison (ASX:JAN), Adam Brimo, group CEO and founder of OpenLearning (ASX:OLL) and Robert Graham, managing director and founder of Schrole Group (ASX:SCL).
General consensus is that Covid has brought forward investments in EdTech just like it has for eCommerce. Worth a listen for views about the market size and competition.
Hi elpaso
i see you are a fan of JAN. has the quesiotn below about recompeting for the ct in 2024 been resolved.
looks like a big Q to me - lose or pay away excess returns are the bear case obviously. big valaution impacts
thnaks for your reply
I'm predicting the PISA student assessment to replace the NAPLAN going forward for the following reasons:
1) more valuable assessment information because it is instant - test regularity is determined by classroom teachers rather than govt authorities. NAPLAN is once every 2 years, results take 3+mths to return to the school = untimely and lacks relevance
2) more generic across different curriculums, can be compared internationally
3) PISA has the opportunity to replace regular classroom testing because it is self-marking and provides the ability to assess students at different levels
Janison also administers ICAS tests (suited for extension students) which are highly respected in many countries as a consistent measurement across different schooling systems.
Education is heading online. Homeschool movement is growing. Globally recognised standardised testing and qualifications are the way forward.
Janison is on a clear runway if they can take advantage of their headstart and win those sales contracts. Their SaaS is developed, already proven and windely accepted.
Disc: I own