3PL - 3P Learning

[McCoy Pauley]

Set to debut on the ASX on 9 July 2014, 3P Learning Limited (3PL) owns and operates a number of online learning systems aimed at students in K-12 (primary and secondary schools), including Mathletics and Reading Eggs. The owners aim to raise $285 million and have priced the company's shares at $2.50/share, which equates to 35x FY15 earnings, making it the most expensive float by PE ratio in quite some time.

According to the prospectus lodged with the ASX, 3P Learning's major markets are Australia and New Zealand, with expansion planned to the UK, the USA and the Middle East.

As a subscriber to Learning Eggs and Mathletics for my children, I can say from personal experience that their software does work, provided that the parents and the children are devoted enough to making it work, but it seems at first blush that the listing price seems very high.

 

[Muschu]

Mathletics and Learning Eggs are used in many schools but among a myriad of other quality programs.

I would consider this a speculative investment with the current product range.

 

[McCoy Pauley]

Been reading through the prospectus over the past few days. I was interested to learn that 3P Learning doesn't own the IP to one of their flagship programs (it's slipped my mind, which one), and I see that as a key risk.

I also tend to think that some of their assumptions are a bit heroic and while 3P Learning does intend to pay dividends, the first payment won't be made for at least 12 months, which I think might dissuade some income investors from the company.

I can see where some analysts are coming from where they've suggesting that the IPO price of $2.50/share is pricey.

 

[McCoy Pauley]

Turns out that the company will be listed under the ticker code "TPN", not "3PL" as it was originally going to be listed.

Not a great day to list on, given the overall market is down almost 1%.

Having a look at the market depth at the moment, and it appears that hopes of a stag profit on the first day may not be realised. IPO was priced at $2.50/share and it looks like the first trades will cross at about $2.25/share.

 

[McCoy Pauley]

Re: TPN - 3P Learning

Finished its first day of trading at $2.15/share, down 14% on debut.

I sat and watched my oldest daughter use Mathletics on the weekend and didn't think that what 3P Learning was distributing involved much rocket science - from what I observed, there seems to be no tutorials, so students are being tested on what they've already learned in class. I understand that there is a competitor that does offer software that complements the in-class teaching through online tutorials, etc.

The question is whether the capacity of 3P Learning to cross-sell the products in its portfolio will help maintain the barriers to entry from other competitors, because based on what I've observed, I don't think Mathletics by itself will erect strong barriers to entry.

 

[VSntchr]

Re: TPN - 3P Learning

Finished its first day of trading at $2.15/share, down 14% on debut.

I sat and watched my oldest daughter use Mathletics on the weekend and didn't think that what 3P Learning was distributing involved much rocket science - from what I observed, there seems to be no tutorials, so students are being tested on what they've already learned in class. I understand that there is a competitor that does offer software that complements the in-class teaching through online tutorials, etc.

The question is whether the capacity of 3P Learning to cross-sell the products in its portfolio will help maintain the barriers to entry from other competitors, because based on what I've observed, I don't think Mathletics by itself will erect strong barriers to entry.

Thanks for the updates in this thread McCoy, I had the prospectus and did scan it quickly, but havent given it anymore time as more synopsis has given me enough information to avoid.

 

[ROE]

Re: TPN - 3P Learning

Thanks for the updates in this thread McCoy, I had the prospectus and did scan it quickly, but havent given it anymore time as more synopsis has given me enough information to avoid.

My kids use them for a year with their stuff, didn't find that enticing .. we dropped the subscription...I don't think they can maintain a customer based large enough to generate re-occuring revenue and most of their stuff can be source else where for free or cheaper

plus founder cash out most of the money and using a rising market to do so ...

good reason enough to avoid

 

[notting]

Re: TPN - 3P Learning

Picked a pretty awful day to debut given what happened to Navitas yesterday.
Not their fault but a bad omen.

 

[McCoy Pauley]

Re: TPN - 3P Learning

Picked a pretty awful day to debut given what happened to Navitas yesterday.
Not their fault but a bad omen.

Their IPO price was very high though. Might have got away with it had they listed on NASDAQ, but not on the ASX.

 

[McCoy Pauley]

Re: TPN - 3P Learning

Announced to the market this morning that 3P Learning has changed its code to 3PL.

http://www.asx.com.au/asxpdf/20140818/pdf/42rjlpdq7v41s4.pdf

 

[System]

Re: TPN - 3P Learning

On August 18th, 2014, 3P Learning Limited changed its ASX code to 3PL.

 

[peter2]

Nice chart, showing a clear resistance level (2.60), with a weekly higher low (HL) indicating demand. I also like the small micro-triangle at the 2.60 level as it provides a low sized risk entry for a nimble trader.

The low daily volume and the occasional price spikes (thin market depth?) made me reluctant to include this in the Pav momentum thread. Daily volume is gradually picking up as price goes higher and it looks a reasonable medium term trade with a slightly larger sized iSL.

 

[rnr]

Well, you just wouldn't believe the number of members standing in line to make a post concerning 3PL.

Around mid March of this year price re-tested and rejected an old low from June 2016 and subsequently made a high close of 98¢.
I am not sure whether this stock can benefit from some of the issues caused by the Coronavirus however, if it can then I would be looking for a bounce/reversal in the next few days. [DNH]

 

[rnr]

Update from last post:-

3PL moved down further until finally forming a double bottom (June 12th) @ $0.72.
Price since then has risen strongly forming 3 impulse waves with a gap up to wave 5.
Now looking for an a-b-c wave retrace and will the gap be closed as price retraces? [DNH]

 

[Dona Ferentes]

3P Learning interloper BYJU'S is back with another bid for the software company. Only hours after suffering a knockback at $1.45 a share, it is understood BYJU'S returned with another offer sent to 3P Learning's board late on Tuesday.

The new bid is understood to be at $1.50 a share, well above the company's $1.30 a share last close and $1.35 a share agreed deal with California edtech company, IXL Learning,

BYJU'S offer was understood to contain much of the same conditions as its previous bid, but the price increase is sure to give 3P Learning's board plenty to think about.

BYJU'S first challenge is to get 3P Learning's board to stop the shareholder vote on IXL's bid, which is slated to head to a scheme meeting on Friday. Then it wants a few weeks in the data room to firm up its indicative bid.

BYJU'S latest bid is more than 10 per cent above IXL's bid. BYJU'S is a private edtech company based in India that runs programs for primary and secondary school students..

 

[Dona Ferentes]

Today, the resignation of MD & CEO, and announcement:

3PL TO MERGE WITH BLAKE TO CREATE A LEADING EDTECH PLATFORM

• 3P Learning Limited to merge with Blake eLearning Pty Ltd by acquiring 100% of Blake from Pascal Educational Services Pty Ltd as trustee for the Blake Sandblom Trust and the BeL Unit Trust, and KPIT Pty Ltd as trustee for the KP Investment Trust to create a leading EdTech platform (“MergeCo”)
• Blake is a privately owned, Australian-headquartered, global provider of online education products focused on pre-K to year 10 students, offering a broad range of literacy and numeracy products with a growing presence in the direct to consumer market
• The Merger will create a large scale, high growth, global EdTech platform with ownership of a comprehensive product suite and diversified channel mix
• 3PL and Blake have identified significant synergies and strategic cost efficiencies of between $7.5m - $12.5m per annum
• MergeCo will have pro forma CY20 revenue of $100.5 million and pro forma CY EBIT of $20.8 million (including annualised synergies and strategic cost efficiencies)
• 3PL will issue 137.0 million shares to the Sellers, representing 49.6% of the merged company’s issued securities
• The Merger is expected to be approximately 279% earnings per share accretive on a pro forma CY20 basis
• The Merger is subject to shareholder approval by ordinary resolution (>50%) at a general meeting

 

[mullokintyre]

3PL came up in a scan I was playing with.
Forecasts, if you can believe them of course, look all right, and it has been under a bit of price pressure recently.
Waiting for it to turn positive, that 1.20 mark ha been a bit of a barrier, but it did break through it on the last leg up.
Mick