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EDTK - Skillful Craftsman Education Technology Ltd.


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Cash Per Share: $2.15

Market Price: $2.25

No Debt.

EPS: $0.8-1.00 per Share

I was able to score some at $1.95 per share for my beer/speculation fund, I would've increased allocation considerably if I actually can figure out their product. There's very little regarding on their users and product, and it can very well be a fraud. However, looking at financials (not a forensic accountant), management is not paying themselves fat salaries, AR is not bloated, and does not really have any red flags. 

Does anyone have any idea if this is a legitimate company, only IPO'd on September 2020 IIRC.

Company Information:

They are selling online courses for aspiring trades people in China, capitalizing on the trend that in order to go to official trades college, you would need a "relationship". 

Of course user base, high insider ownership (50% of shares owned by management), cash per share doesn't matter, as it is a VIE structure. Hence, assets can be swapped, accounting can be fraudulent, and there's very little recourse for North American investors. If Yahoo couldn't win the lawsuit with Alibaba concerning Ant Financial, then I have very little confidence that I will get back my investment if it goes to a business-ending event.

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Appointed a new Co-CEO and acquisition. Might be the smoking gun to sell - issued 2.9M shares to acquire the Jisen Information Tech. Company is tremendously undervalued, and management diluted themselves. Again they may have a strategic rationale, but company is trading less than 3x earnings. That may be justified, if not for their entire market cap being covered by their cash.

 

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