Post by Hot Christian Stocks on May 14, 2014 19:15:21 GMT -5
Introducing
Sibling Group holdings, Inc
Sibling Group Holdings, Inc., which trades on the OTC market under the symbol “SIBE” is an education technology and education management company targeting the rapidly changing K-12 and higher education markets, in addition to the large and fast growing corporate training sector.
• The educational technology sector is growing quickly driven by demographic and economic factors and the rapid advancement of digital technologies and is expected to reach approximately $345 billion worldwide by the year 2019, within certain subsectors of this market expected to grow at up to 23% CAGR through the year 2017.
• While there is significant change in higher education, there is equally robust change within the K-12 sector. The implementation of Common Core State Standards and innovative teaching methodologies is driving a massive technology upgrade cycle within the K-12 segment.
• Investment is pouring into the educational technology sector as both venture firms and corporations chase the huge growth. SIBE’s strategy is to act as a consolidator acquiring, on an accretive basis, some of the smaller, but still successful, market players while at the same time driving revenue growth through internally developed products and services.
• The company has already announced its first meaningful acquisition, which is involved in the fast growing blended learning environment. We are expecting this acquisition to close by the end of the June quarter. Upon closing, we expect the company to scale up through combined sales and marketing teams and cross-selling into the customer bases of other portfolio companies. We believe additional accretive acquisitions are being negotiated and are likely to be announced over the short-term.
• We believe investors will be able to justify the current share price based on the successful closing of this first acquisition alone. We are expecting additional accretive acquisitions to be announced over the short-term, which we believe will further drive shareholder value.
Executive Summary – Sibling Group (SIBE) and the Educational Technology Market
Moderately risk-averse investors should be watching closely for developments at this company as its acquisition strategy seems to be gaining traction. We are expecting the company’s first acquisition to close over the very short-term and it appears additional accretive acquisitions are close at hand.
Sibling Group Holdings, Inc., (OTCBB:SIBE) headquartered in Atlanta Georgia, is an education technology and education management company targeting the rapidly changing K-12 and higher educations markets, in addition to the large and fast growing corporate training sector. The company is fully compliant and current in its reporting with the U.S. Securities and Exchange Commission and trades on the over-the-counter market under the symbol “SIBE”.
While there are robust opportunities within the market for management of educational institutions, we believe the company’s opportunity relative to the educational technology marketplace is far larger. The educational technology sector is growing quickly and is expected to reach approximately $345 billion worldwide by the year 2019, with certain subsectors of this market expected to grow at up to 23% CAGR through the year 2017.
The educational markets within the United States are currently experiencing profound change. The cost of college attendance has skyrocketed 27% beyond the rate of inflation over the past five years. The cost of college attendance at a private institution is now on average well over $30,000 per year and while the rate of tuition increases has slowed, these increases are still significantly outpacing inflation. While it is expensive to attend college in the United States, it is even more expensive not to attend college as the disparity in wages between the college educated and the non-college educated continues to widen. The desire for a university education combined with the high cost has driven many students and parents into significant debt as student loans are used to plug the gap between what parents can afford the expenses students are incurring.
The high cost of college tuition is causing many students and parents to rethink the traditional college education, which has resulted, along with other factors, in rather significant drops in college admissions over the past few years. The changing degree emphasis away for liberal arts, along with changing demographics, are threatening the very existence of many of the smaller universities. These factors combined with rapid changes in technology and in the methodologies students use to access these technologies and communicate within society are causing severe disruptions within the traditional technology environment of universities.
While there is significant change in higher education, there is equally robust change within the K-12 sector. The implementation of Common Core State Standards and the desire to integrate new learning approaches are not only forcing a radical change in teaching methodologies, but are also are straining the antiquated technology fabric of K-12 institutions.
As these demographic, economic and technological changes are forced upon educational institutions, a significant transformation in the educational environment is taking place. Mass adoption of new technologies is occurring, which is creating significant opportunities for educational-oriented technology companies and for the investors who finance these operations. Online learning, and enhancements to this evolutionary technology, such as blended learning and Massive Open Online Courses (MOOCs), along with student’s desires to fully integrate their personal communication devices into the academic environment are driving further changes in the information technology and communications landscapes within the educational market.
The venture capital community and large public and private companies have responded to the strong market opportunity that has resulted from the disruption of the technology fabric within the educational market. M&A activity within the educational technology sector is very strong as is the level of venture capital investment. With the strong level of venture capital activity and other investments that have created hundreds of new entrants into the educational technology space, we believe it is clear there will be many companies within the sector that over the next few years will be starving for liquidity events.
We believe the many changes in the educational technology marketplace and the proliferation of new entrants into the sector creates a strong opportunity for a company, such as Sibling Holdings Group, Inc., to act as a consolidator acquiring, on an accretive basis, some of the smaller, but still successful players. This is the strategy SIBE’s management team seeks to implement over the coming few years. It appears the company is poised to soon close its first significant acquisition and it appears the announcement of additional accretive acquisitions is forthcoming.
While the educational technology market relative to K-12 and higher learning institutions offers a significant opportunity for the company, additional extremely strong revenue opportunities exist relative to the corporate training market. As the U.S. economy has improved, medium and large corporations are again spending on corporate training. Last year, corporate training grew by over 15% after seeing increases during the previous year of 10%. The company has clearly stated its intentions to target this very large and fast-growing sector of the educational market.
As is explained in more detail in this report, we have established a near-term price target of $0.50 for these shares. We believe, however, this could very likely prove to be too conservative as it appears additional accretive acquisitions have been identified. Additionally, the company is in process of responding to several major RFPs. Success relative to either acquisitions or landing portions of this new business will likely propel these shares well beyond our price target.
While the company’s strategy is not without risks, we believe the opportunity is vast and if properly managed, the company, its experienced management team and the company’s investors could see considerable success.
Conclusion – Is Sibling Group, Inc. (SIBE) a Buy or a Sell?
We believe Sibling Group Holdings, Inc. has a strong opportunity to successfully complete a rollup of various assets and companies within the educational technology marketplace.
Moderately risk-averse investors should be watching closely for developments at this company as its acquisition strategy seems to be gaining traction. We are expecting the company’s first acquisition to close over the very short-term and it appears additional accretive acquisitions are close at hand.
Significant sums of money are being invested into this sector and revenue growth is very robust. The industry is experiencing significant changes due to strong technology shifts, demographic changes and the introduction of new teaching methodologies. In our opinion, the significant upheaval in the marketplace creates strong opportunities for savvy management teams to expand business operations. If this management team properly manages this process we believe there is an excellent opportunity in front of this company.
Purchasing these shares, however, is certainly not without risk for the reasons we outlined above, but we believe the current stock price is justifiable alone by the closing of the acquisition of Blendedschools.net.
We believe there is significant upside to the share price as the company moves the internally developed products and initiatives into the marketplace and as additional accretive acquisitions are completed.
Management & Board
Dave Saba - President & Director
Maurine Findley - CFO
Amy L. Lance, - Chairman & Director
Mack Leath - Director
Dr. Andrew Honeycutt - Director
read Third Point research report here
Thursday, May 1, 2014
Sibling Group Focus on Corporate E-LearningMarketwired( (Thu, May 1)
Thursday, April 10, 2014
Sibling Group: Blended Schools Network Reaches Significant MilestonesMarketwired( (Thu, Apr 10)
Tuesday, April 1, 2014
Blended Schools Network Partners With Seton Hill U. for College Credit ProgramMarketwired( (Tue, Apr 1)
Tuesday, March 18, 2014
Sibling Group Announces Blended Learning for Credit Recovery MarketMarketwired( (Tue, Mar 18)
Friday, March 14, 2014
Sibling Group Announces New Chief Financial OfficerMarketwired( (Fri, Mar 14)
Monday, January 13, 2014
Sibling Acquires Consulting Group, Expands BoardMarketwired( (Mon, Jan 13)
Headline News: finance.yahoo.com/q/h?s=SIBE+Headlines
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