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Advtech vs Curro?

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Hi guys, just read an interesting article by Simon Brown on Advtech vs Curro. I own Curro and Stadio shares and have high hopes for some serious J curve growth from Stadio, but considering selling Curro for Advtech while im up on Curro. In the article he suggests that without the tertiary sector in Curro, its overpriced @ the moment and too mature to grow rapidly where as Advtech is set for more rapid growth, espcially in the tertiary sector, competing with Stadio.

 

Comments and thoughts?

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Kinda had the same thought as SB and sold my curro before the split. Bought ADV and PSG so was still in the sector as well as still in the company - but diluted. Although I am up in both - might have been slightly better of having gained the stadio shares. Went to have a look - looks like I would have been better off around R2k. Irritating, but no train smash. BTW - pretty hard finding transactions on EE. Way easier with ABSA - not sure why EE has to add ( or show) the interest earned every day.

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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??

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Curro far to expensive at the moment, I would stay away. STADIO is growing very fast, and their future looks bright. Personally I am invested in Advtech and Stadio. So far so happy.

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