Sentiment: Buying opportunity

OpenLearning Limited (OLL) is an educational technology company based in Australia. The company offers a social online learning platform that can deliver massive open online course, short term training and online degrees.

OpenLearning has partred with several reputable educational institutions such as University of New South Wales, University Technology Sydney, Taylor’s University to deliver MOOCs (massive open online courses) in Australia and Malaysia respectively. Bellow you can see some of the many partners.

OpenLearning also owns a cloud based software product for companies to create private educational portals on its platform.

OpenLearning workes with more than 20 public universities, 10 private universities and 34 polytechnics in Malaysia to deliver over 800 courses to 600,000 students.

The company also provide MOOC to the Australian Federal Government and has only recently in December 2019 been listed on ASX.

In the last financial report the OpenLearning has showed very strong growth in FY20, signs major agreements and
partnerships to drive revenue in FY21 and beyond.

Increase of 48% YoY in gross sales to $2.87m in FY20
• 18% YoY increase in revenue to $1.89m (sales less revenue shared with education providers)
• 56% YoY increase in Platform SaaS revenue to $1.13m making it the largest revenue stream in FY20
• 42% YoY increase in annual cash receipts from customers for FY20 to $3.18m
• Increase of 42% YoY in annualised recurring revenue (ARR) to $1.35m as at end FY20
• 169% YoY increase in Platform SaaS customers to 167 as at end FY20
• 2.73m registered users as at end FY20, an increase of 57% YoY
• 4.41m total enrolments as at end FY20, an increase of 74% YoY
• Strong cash balance of approximately $8.6m as at 31st December 2020.

✅ Sp is currently trading 51% its double top in September and November, offering a significant opportunity to enter into a stock that is highly depreciated but holds great fundamentals.

✅ SP is currently crossing EMA to the bullish side.

✅ Heiken Ashi is currently weak on downside and the upside. This means there is an indecision of buyers and sellers ath the current levels. Provided the stock has been falling over the last 4 months it could be a great rebound point if SP stays trading above EMA.

🚩 Because SP and EMA is currently sitting under SMA, a stop loss is a must. The stock is still in downtrend.

✅ Anyone buying this stock under SMA at 51% lower than all time highs is not FOMO into this trade.

Overall, we believe there is a great opportunity and potential upside. The company continue to show growth QoQ and YoY and we believe the SP has only been affected by the hype on the vaccine. The fundamentals are the same as it was at the all times high and we don’t see the world changing back from online education to presencial education. In fact, we believe the company will continue to growth and buying at the current levels is quite a safe entry. The stock start falling once the Pfizer has announced the vaccine.

Target: 24c

Aimed profit: 24%

Stop loss: 15% below the purchased price.

Weight on portfolio: up to 10%

Risk: Medium





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