EVO - Evolve Education

[Hectorplains]

Centres are being bought on 4.9 times EBITDA and are eps accretive

Thanks for that.

This is interesting - http://www.fool.com.au/2015/06/24/no...-education-ltd - some of the same factors are in play with EVO.

[winner69]

Thanks for that.

This is interesting - http://www.fool.com.au/2015/06/24/no...-education-ltd - some of the same factors are in play with EVO.

That's a pretty sad story

One thing I have learnt over the years is that you need to follow the charts with these sort of outfits that growing by acquisition and consolidating a fragmented market.

Sentiment rules. Fundamentals/broker targets and whether acquisitions are eps accretive generally mean squat all. At times they will appear undervalued and at times appear to get more and more outrageously overvalued. Just follow the squiggly line and ride any wave up but when punters turn against the company so does the share price.

One other observation ....at some point in time there always appears to be a point where further acquisitions (counter intuitively) Dont seem to add any more value.

So watching that squiggly line I am .....not that bright at the moment but maybe early days ....or is Norah a drag on the share price.

[winner69]

Different market but same sort of acquisition / consolidation / capturing efficiencies model is Greencross GXL

Their chart reflects whst I was trying to say in above post

[winner69]

Jeez that GEM chart looks pretty sad as well.

Common theme here ..... EVO will need to be something special if tarred with the same brush

Interesting