JAN - Janison Education Group

[galumay]

More bad news for H1 2022, JAN continues to grow expenses faster than revenue - so not scaling up at all. Cash flow is negative now as well.

Only a small position in the personal portfolio, so i will sit on it a bit longer, but its looking like it cant scale at this point. I am making some allowances for the impact of covid, but its disappointing to see the failure to execute in a business I thought had significant potential.

 

[Dona Ferentes]

new article by the editor-in-chief ....https://arichlife.com.au/

Why Janison Education Group (ASX: JAN) Is Interesting An Interesting Stock​

Janison Education (ASX: JAN) has cash in the bank, growing revenue and improving gross profit margins, but it's still making a loss.

 

[galumay]

As per my post above, JAN seems unable to scale. I think KME is a much better business in the sector, my much larger position there probably a reflection of my relative conviction!

 

[peter2]

After losing 70%, price seems to have stopped falling. Worth placing in a reversal watch list.

I'd need to see a HVBB that pushes through 0.50 before I'd consider buying.

 

[galumay]

Peter2, they had a horrible H1 and the market punished them accordingly, their recent update for the full year was more positive and I think that has probably put a floor under the price. The release of the FY results shortly will be interesting, will need to meet or exceed the earlier trading update or I suspect it will get punished again. Personally its the end of H1 this year that I will be watching for any evidence that they can actually scale the business and pivot to profitability.

(I realise you are looking at it from a trader's TA perspective, but thought you may appreciate an insight from my perspective on a more FA basis!)

 

[peter2]

@galumay I post on threads that you've responded hoping that you'll provide your current thoughts.
Your concerns on JAN were proven correct. I thought their recent update was positive also and that's why I put JAN into my reversal watch list.
Seems we're both waiting for more positive data. I need to see signs of demand (buyers) in the price chart. You need to see improved fundamentals.

 

[galumay]

My suspicions with $JAN confirmed with the release of their AR for FY22, not that there was really any new info, just confirmation of the deteriorating margins meaning its just not scaling. Revenue growing, but FCF falling heavily, at least they have no debt and I will wait and see what they can achieve in normalised conditions without all the usual suspects to blame. Its only a very small position anyway due to my lack of conviction.

I just looked at the investor presentation - another red flag there, $JAN reference a "broker consensus table"

 

[Dona Ferentes]

seems to have slipped... 38c

.

and the words

..
a bit messy, though MIR mentioned it as worthy as an "overlooked microcap"

 

[galumay]

@Dona Ferentes, this was my notes when they released the update,

"Slightly better H2 to finish off the FY, but huge red flags with this mob, market update for the FY2023 trading results fails to mention earnings at all, just waffle about bullsh*t EBITDA, so we know a significant loss is coming again this year, depreciation running at 150% of OCF so the loss is obvious but they fail to talk about it at all. A dud of a business."

 

[Dona Ferentes]

not happy JAN holders

.
held an AGM a few days ago, and out they go.
.
Y24 outlook.

Management is pleased with the revenue growth across all core lines of the business in 1Q24 with the exception of ICAS. Management remain confident for the medium to long-term prospect of ICAS with initiatives such as the University of Sydney partnership and expanding international interest opening new opportunities.
- In general, the education sector globally is finally returning to normal, post the profound impact of COVID - and looking to growth, presenting significant opportunities for Janison.
- The outcome of a strong pipeline of strategic Solutions deals is expected to be announced Q2/Q3 FY24. We will provide further guidance after the first half of FY24.
- The business will continue to implement strategy and operating plans that drive core business performance over the course of FY24.

NH

 

[craigj]

Specie play in the education field

revenue and Gross Profit increasing year on year

i like the education field especially in the area of online testing with so many problems in the field

 

[galumay]

Definitely a speccie, unprofitable and seemingly unable to scale. I have held for a while, only a small position due to the high risk. If you read back thru this thread I point out some of the red flags with management too.

The recent AGM and trading update is a case in point of Management's deceptive behaviour, they absolutely avoid talking about earnings at any point, they only use EBITDA (bull**** earnings), this is to disguise the failure to scale IMO, revenue growth is not driving earnings growth, in fact losses are increasing.

 

[Bailxtrader]

Education been coming into its own of late. With so called teacher shortage at present.

Janison Education Group Limited (JAN, formerly HJB Corporation Limited) operates within the education technology (edtech) sector globally. Its activities include the provision of online assessment software, assessment products (exam content), and assessment services (invigilation, marking, test development and exam management). Janison's core customer segment is the school's market (K-12) in Australia, Singapore, the USA, and the UK. Customers include state and federal education bodies, schools and parents. Online testing is delivered across 117 countries each year, in 10 languages and with accessibility a primary concern to ensure equitable assessments for all students.

I see they have fallen short in the past. But they have some interesting Announcements, Compounding some key contracts, could this be the way forward. Jumping 54.9% this morning on that news, are they on there way back up?

 

[galumay]

I sold out last week, finally gave up on them!

Sometimes investing is hard.

 

[Bailxtrader]

I sold out last week, finally gave up on them!

Sometimes investing is hard.

That's unfortunate: So unpredictable, I'm sure if JAN doesn't edge forward from here, its a lot of Hot Air. I don't think they can hold it from here?

 

[galumay]

The test will really be the H1 results, one contract announcement wont solve the structural problems with the business.

Still, it took me nearly 3 years to decide to sell after I realised what was wrong with the business and noting that my thesis was broken, just wish it had taken me 3 years & a few more days!!

 

[peter2]

Since that pop, price has drifted lower and closed that gap. There appears to be a soupcon of demand recently.

Losing less money now. New CEO.

 

[galumay]

Thanks @peter2, I had managed to forget about this #sh1tco until you posted this!