Left of field type news might drive some significant volatility in this sector and possibly this company over the coming days/weeks..................see Canada-Saudi news of late on this front. The whole thing was kicked off via a tweet......
About 16,000 Saudi international students are currently being 'reshuffled' (to put it politely) to 'elsewhere'............CNBC reports that "The Saudi government ordered around 16,000 students in the North American country to either return home or complete their studies in another part of the world".
This is significant on many levels but especially for businesses like ICT, as Canada's 'loss' might well translate into Australia's 'gain' in this scenario. Which in turn might just flow on to companies like ICT.
Now I'm not too sure on the actual ramifications or the magnitude/impact on Australian international education sector and companies therein...............but Australia is a very popular destination for international students no doubt (China making up the bulk).
These unfortunate Saudi students will need to find somewhere else to finish/commence their studies now. Upshot? Increased interest from investors in the sector maybe?? Potential to increase enrollments and so on. Furthermore, this news will have (should have?) 'generally-speaking' put a brighter spotlight on international education sector I would think..........and that might even be enough to spark further interest/gains for ICT all on it's own.
ICT have been on a very nice run up from recent lows so shorter term profit takers from recent 5c cap raise and lower level buyers may well be looking to exit if this really flies over the 10c mark.
However, TA indicators are showing that ICT is pretty 'cooked' just now imo (see SS OBV RSI etc).........
So beware of buying on these highs is my first thought, but then again any good up-tick in enrollments (which I would expect regardless of this Saudi thing) or an announcement along these lines as a direct impact from this forced movement of Saudi students could catalyze and help maintain further gains here imo.
Regardless of TA.........the business is in a very healthy growth sector and they're expanding......last qtr was a standout for ICT no doubt.........."Highest quarterly recorded revenue since the inception of iCollege"......."The business is expected to demonstrate solid revenue growth quarter on quarter moving forward" etc etc.
On another note, from the most recent announcement......"iCollege is pleased to report that the updated number of enrolments in CRICOS and ELICOS is now at 337 including current and future enrolments. This represents a total booked unaudited revenue of $3.4M with enrolments increasing at a rate of 5-10 per week"........
If ICT keep on slow grinding these numbers upward then they might just be looking 50+ new enrollments a month near term, maybe many more longer term......."The business is confident of rapidly increasing these numbers especially with the commencement of training at the Perth campus from August 2018"......only nine days into August. I'll be very interested to see the 'next' set of enrollment figures.
Incorporation into China is also on the cards.......
They have listed options for those looking for a leveraged play: ICTOB exercise at 8c in approx 11 months time. Directors hold good to sizable chunks of stock also. I for one am bullish medium to longer term on this stock.
The foundation is built, they just need to keep on doing what they're doing to drive value here (that's my take anyway, take it or leave it).
ICT Price at posting:
9.0¢ Sentiment: Buy Disclosure: Not Held
