3P Learning fits the Peter Lynch model

by Gary Glover

One of Peter Lynch's well known investment mantra's is Ïnvest in what you know".  If you are exposed in everyday life to good products you are just as likely or possibly more likely to know about them before Wall Street does.  
The ipod and Domino's pizza app are two products in recent years where after using these products I felt they were winning products.  
One which I have recently been exposed to is Mathletics, an online numeracy program for children in schools.  If my kids love is anything to go by then this may be one for the Peter Lynch methodology of investing.
Due to it's recent popularity I noticed this learning tool has been added to some school curriculums and because of it's testing and monitoring capabilities for teachers it is becoming more widely used.  Other product offerings are know available by 3PL and other regions (overseas markets) are also being targeted.  
Macquarie have a $3.00 price target on 3PL currently and with licensing fees likely to be increased 15% next year, a certain amount of EPS growth is already assumed.  
I think this producy has potential to be rolled out to global education market and other products also could be in the future pipeline.  If it's mainstream product "Mathletics" is anything to go by then this could be a company for the future.  
The greatest risk here is valuation - is it priced too expensively.  Normally the good companies are in the early days.  The company has only been listed since July this year.
One to have a serious look at I believe.


Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.

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