Many agree that the online distance education industries will be the next sector to see a major run. Education is the 2nd largest component of GDP, over $700 billion. With recent advancements in technology, there is a major shift in the deliver of educational content. I believe there will be many companies that do well, but my favorite is this one:
Educational Video Conferencing, Inc., NASDAQ SC, "EVCI"
Technology:
DSL or higher Internet, 30 frames per second (tv quality), multi-point, interactive, visual communications, via desk top computers. Multiple people can see and hear each other "live" at the same time with television quality picture and sound. EVCI recently won a Smithsonian Award as the only company in the World who controls the bandwidth and the through put to guarantee a 30 frames per second, multi-point, interactive, audio/visual communication for theoretically unlimited users over desk top computers.
Content:
EVCI is a content aggregator offering over 2000 courses and over 200 degree programs, as well as K-12, professional development, corporate training, test prep, etc. Providers include University of Notre Dame, St. John's University, Touro School of Health Sciences, Touro Law, Lesley College, Mercy College, Manhattan College, Adelphi University, The College of Insurance, Dearborn Institute, Kaplan Educational Centers, AxessPoint, Computer Generated Solutions, and others.
Current Customers:
EVCI decided to start at the top and work their way down. In just their first year of business, they were able to secure long term contracts with some of America's top corporations within their respective industries. The list includes Lockheed Martin, Merrill Lynch, Citibank N.A., Travelers Insurance, Reliance National, CNA, Zurich U.S., American International Group, General Reinsurance, Bell Atlantic, and the NFL.
**Marketing Partners:
Many companies have been so impressed with EVCI's technology and content that they are spending millions of dollars marketing EVCI's services as a value added service for themselves. EVCI has signed co-marketing agreements with AT&T, WeMedia, Excite@Home, Consortium for Worker Education, Consumer Generated Solutions, and Bell Atlantic.
In fact, Bell Atlantic has made EVCI their 2nd largest marketing initiative for 2000. Bell Atlantic is currently training over 900 sales reps to market EVCI. Bell Atlantic recently had a key executive join EVCI's management team to help oversee the operation. Bell Atlantic has started a whole new division called Remote Learning Solutions (http://www.bell-atl.com/largebiz/rls_index.htm), which is specifically to sell EVCI's services.
Growth:
EVCI spent last year building the infrastructure of their company. Revenues for last year were around $1 million dollars. This year is their first year to truly focus on sales and marketing. EVCI should be releasing 1st Q numbers around the 11th of this month. They should report around $2 million in rev's for the 1st Q of this year, without Bell Atlantic's sales reps help. Once Bell Atlantic's sales force goes to work (which should be by the end of this month) the numbers should increase at a great rate.
Potential:
The online distance education industry is projected at being one of the most dynamic growth industries over the next few years. Many companies within this sector are expected to do well.
A look at EVCI's recent chart shows that, before the Market Sell Off in March and April, EVCI was on a run and had climbed from $17 to $40 in just under 30 days. EVCI's current market cap is only around $80 million. I believe the stock has the potential to double, triple, even quadruple by year end.
What do you think? Is it worth a look? |
