Atlanta, GA – Scibility Media – 10/17/2014.
This article discusses three companies in the education industry: Sibling Group Holdings, Inc. (OTCQQB: SIBE), DeVry Education Group Inc. (NYSE: DV) and K12 Inc. (NYSE: LRN)
A report by the Washington Post last year cites the global value of education to be $4.4 trillion. From an investing perspective this is a strong industry to participate in and with the projections for growth so high (23% by 2017), it sort of helps to have a firm handle on things before jumping in.
Maximizing investing returns is all about imperatives and there are three big ones that make education a sound opportunity for investors. The three companies being looked at here all have some connection to these imperatives.
Imperative #1 – K-12 dynamics and how they affect the industry potential
Sibling Group Holdings, Inc. (OTCQQB: SIBE) provides benchmark quality online curriculum for the K-12 marketplace, complete hosted course authoring tools, professional development for teachers and a learning management system (LMS) environment. The company has just announced an agreement with LoudCloud to bring online, blended and competency-based learning to more K-12 students.
The news from SIBE comes on the heels of general buoyancy in the K-12 sector – a major revenue driver in the education industry and the subject of much debate across US legislature. North Dakota lawmakers recently proposed a $2 billion draft bill for K-12 funding, the largest in the state’s history.
Funding levels such as those proposed by North Dakota represents a strong commitment to the K-12 sector but it’s important to understand as well that many states are cutting back. Balance must therefore be an important part of the investing criteria. Tapping those investing opportunities that have some sort of future-proof element to their operations is vital.
Imperative #2 – Market Growth and Its Investing Tie-in
Education and its $4.4 trillion valuation will only grow with the continued addition of more and more students. The news on this front is just as positive for industry players as well as investors. By 2030 the number of students expected to be enrolled in higher education around the world is expected to reach 414.2 million – a massive jump from the 99.4 million students that were enrolled in 2000.
Companies like DeVry Education Group Inc. (NYSE: DV) which recently announced a strategic alliance to help Hispanic serving institutions develop their online capabilities, is creating the functional and practical path for growth. The bold initiative is aimed at broadening the Hispanic base of students and creates an even bigger pool of potential profits. Investors who tag these numbers in assessing a company’s viability will almost certainly have the advantage over those that do not.
Imperative #3 – Wall Street Sentiments towards key Players
K12 Inc. (NYSE: LRN) is a major player in the education space and the company is driving innovation and advancing the quality of education by delivering state-of-the-art, digital learning platforms and technology to students and school districts across the globe.
Overall market sentiments towards the company are good and over the past year the stock itself has hit a high of $26.20. Market valuation has settled down since those lofty levels, but even at $14.71 it is clear that K12 Inc. has its fair share of believers.
The company recently announced that it has been awarded a three-year contract to provide the academic curriculum for Pennsylvania’s Agora Cyber Charter School commencing in the 2015-2016 school year.
Education didn’t get to $4.4 trillion globally without merit and investors who’ve taken the measured approach towards the industry will certainly attest to that.
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