I hold a few Advtech. I had been looking to add more at lower levels - maybe if it drops below R16.00 . However, I am now reconsidering what to do. I am still optimistic about Advtech's prospects. They have good , well established educational brands at secondary and tertiary levels, with good reputations. They have a good track record (however, the management shuffle at the top, a while back did shake confidence a bit!). Their most recent results were fairly satisfactory, given the tough economic conditions ( a big concern being the decreasing enrollments due to the economy and EMIGRATION!). If i recall correctly, they are targeting FY2018 Heps of R1.00 , putting them on an 18 month toward PE of around 17. Not very cheap (especially for a forward PE , where targeted Heps is not certain!), but still a lot cheaper than Curro ( and Curro does not pay a divi, whilst Advtech pays a small divi!).
However, my dilemma, is whether to stick with Advtech, or buy either Curro or Stadio, or both. Buying both gives exposure to both the secondary and tertiary educational sectors. The attraction of these companies is the backing and expertise of PSG, who seem to have the 'midas touch' ( the share prices of the companies they back usually reach stratospheric levels!!). They seem to have a plan to turn Studio into the pre-eminent tertiary educational brand, judging by recent acquisitions. So, a!though on high PE's, they could unwind fairly quickly.
Alternatively, maybe I am better off holding all 3 shares ( is. Advtech, Curro and Stadio ), as quality private education should be a long term growth story ( I say should, as we have to wait and see what happens with the " Free tertiary education " Bill in the offing, and its impact on enrollment at private institutions.)
Any thoughts??
