Home > Boards > US OTC > Delisted > KGIC Inc. (fka LGLTF)

Paradigm Capital Inc, target $1.00 plus

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
pointofreturn Member Profile
 
Followed By 20
Posts 585
Boards Moderated 0
Alias Born 01/21/11
160x600 placeholder
pointofreturn   Wednesday, 02/19/14 04:24:42 PM
Re: Stocker1313 post# 2
Post # of 53 
Paradigm Capital Inc, target $1.00 plus
Conclusion
Overall, we remain excited about the Loyalist story given the numerous growth levers.
FIrst, we believe the M&A opportunity remains a key catalyst given the fragmented nature of the Canadian ESL market, along with Loyalist's position as the sole acquirer of these assets. Second, we believe the regulatory environment remains extremely conducive to
growth. We note that earlier this month the Canadian government unveiled plans to
nearly double the number of international students in Canada by 2022 to 450,000 (from
265,000 in 2012). Last, aside from tuition fees, we believe Loyalist is on the cusp of
capitalizing on new growth opportunities, such as student housing
and franchising. While still in the early stages, we believe these services could ultimately represent extremely high-margin sources of revenue, which could help the company move above its near-term 20% EBITDA margin goal. Recall the company has already announced that it has pre-sold student housing for 104 students for H1/CY14,and that it has also already signed six franchise agreements. We maintain our Speculative Buy rating and $1.00 target price,which is based on 12x 2014e EV / EBITDA.

Note the EBITDA will be up next quarter imho and so will the target increase then.


Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences