Is Genius Group Ltd. a Good Buy?

Among the comical gags that late-night talk show hosts frequently deliver on their programs is showcasing the knowledge base (of lack thereof) of everyday Americans. While viewers are treated to some perplexing dialogue — for instance, Africa is a continent, not a country — beneath the humor lies a dark secret: U.S. education is falling behind that of other developed nations.

According to a February 2017 report from the Pew Research Center, “data from international math and science assessments indicate that U.S. students continue to rank around the middle of the pack, and behind many other advanced industrial nations.” Of course, this ignominious trend contradicts the implications behind the vastly superior integration of American technological infrastructures.

But could tech be creating a dependency for young students, who merely learn how to tap icons rather than stimulate their inherent sense of inquisitiveness? Nat Malkus, the deputy director of education policy studies at the American Enterprise Institute, stated “It could just be that actually technology is not the answer for education, but that it’s sort of the enemy … wearing down the attention span that it takes to develop a sense of reading for pleasure.”

In this manner, Genius Group Ltd. could help fight fire with fire, leveraging educational technology (EdTech) to promote positive outcomes instead of middling results.

What Does Genius Group Ltd. Do?

Based in Singapore, Genius Group is an online education and in-person entrepreneurial training service provider. Unlike other popular EdTech firms, Genius Group represents a holistic platform, serving students across the entire life development stage. Whether a student is just learning basic arithmetic to facilitating corporate leadership and technical skills, the Genius initiative addresses every need.

Rather than a marketing gimmick, the company openly encourages every student irrespective of age to consider its services. Specifically, Genius features solutions for these six development stages:

• Prep: Designed for ages 0 to 5 years old, the Prep course represents a home-based program that nurtures creativity through play while simultaneously inspiring a connection to the environment and citizenship.
• Primary: Targeting students 6 to 14 years, the Primary course teaches accelerated learning skills, including the basics of entrepreneurship to encourage business development acumen.
• Secondary: Geared toward the secondary curriculum (high school) in the U.S. and U.K. academic systems, Secondary disseminates, in addition to accelerated learning, practical skills such as literacy, memorization and speed reading.
• Apprentice: A tertiary education category that provides career-focused programs at the associates, bachelor’s and master’s degree levels, the Apprentice course trains students to be competitive across various high-demand sectors.
• Entrepreneur: An adult-learning program, the Entrepreneur course identifies each student’s business management and leadership profile, thereby providing a targeted approach to commercial success.
• Mentor: Billed as an appropriate age from 18- to 100-plus years, the Mentor program allows individuals with expertise on a particular subject or skillset to share their knowledge for the next generation of workers and entrepreneurs.

While accommodating and intriguing, investors should also realize that EdTech stocks have not printed the greatest performances on the charts. Therefore, due diligence is absolutely necessary before participating in this new listing.

Genius Group IPO

Genius Group launched its initial public offering (IPO) — or the first time a private enterprise distributes its shares to retail investors — on March 17, 2022. Management listed the company’s shares on the NYSE American exchange under the ticker symbol GNS.

Genius Group launched their IPO with 3.27 million shares, restricting their initial plans to IPO with 7.27 million. They raised $17.99 million by keeping the price of their shares between $5-$6.

On the surface, Genius may appeal to investors who cater to ideas articulating a high-risk, high-reward profile. Assuming an initial offering price at the low end of the spectrum, GNS would run dangerously close to penny stocks, which many analysts regard $5 as being the cutoff point. At the same time, the law of small numbers could theoretically boost GNS stock should it attract early buyer sentiment.

Genius, as an EdTech provider, is relatively insulated from the inflationary spike. Because it largely distributes its services through online channels, the company enjoys a favorable mix of fixed and variable costs. Therefore, Genius could provide service-fee stability to the end-user.

But on the other end of the scale, inflation, if left unchecked, will invariably affect household budgets, particularly those in the middle-income bracket. Here, Genius and any other EdTech platform runs into a critical problem. Learning is indispensable. Accelerated learning (though highly desirable) is not. Thus, Genius’ target base may skimp out on its programs, instead choosing lesser but cheaper alternatives.

Genius Group Financial History

Although Genius Group features a compelling narrative, the financials represent the reality check that every prospective investor must consider. On the private-equity side, the company has only amassed $12.6 million across four funding rounds, making it rather slim for a business about to launch an IPO.

Over the 12 months ending June 30, 2021, Genius booked $9 million in revenue. However, the EdTech firm has historically struggled to post profits, with 2020 featuring a net loss of $3.5 million.

Genius Group Potential

The main catalyst driving GNS stock is the sudden need for accelerated learning protocols. According to a McKinsey & Company analysis, the COVID-19 pandemic set students back on average five months in mathematics and four months in reading at the end of the 2021 school year. Therefore, academic professionals must close this gap.

Unfortunately, the gap is most prominent in underprivileged communities, presenting a vexing challenge. The technology that may address the situation is also largely unattainable for those in greatest need. So, policymakers must dig deep to find workable solutions that address all student needs, not just those hailing from higher-income households.

GNS Restrictions for Retail Investors

Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.

GNS Pre-IPO

You may open an account with ClickIPO to start an application to acquire GNS stock at its initial offering price. While this approach may afford you a discount relative to the public debut price, bear in mind that free market conditions could easily sink a low-interest entity below its starting point.

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