Category: Baystreet Newswire
Date: Tuesday, May 27, 2014
New York, NY / ACCESSWIRE / May 27, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has initiated coverage on Creative Learning Corporation (OTCQB: CLCN).
“We are intrigued with the company’s focus on providing educational programs to children aged 3-13, and note that its initial franchise, Bricks 4 Kidz(r) was ranked the #1 concept in Entrepreneur Magazine’s recent list of Best Child Enrichment Franchises,” commented Ajay Tandon, CEO of SeeThruEquity. We look forward to following the company’s newest franchise, Challenge Island and Sew Fun Studio, and are initiating coverage with a price target of $3.33 per share.”
Additional investment highlights are as follows:
- Unique Business Model. By acquiring promising brands from their founders and providing professional managerial support, while allowing them to maintain their creative leadership, we believe Creative Learning can help grow its franchises without losing their entrepreneur spirit. The company follows a non-capital intensive, mobile franchise model that does not require a physical location or significant start-up costs. Creative learning incorporates a proprietary, innovative curriculum that focuses on children’s educational development by reinforcing the STEM (science, technology, engineering and mathematics) disciplines. The company also provides franchisees with a proprietary, sophisticated Franchise Marketing Tool (“FMT”) which creates a solid foundation on which both franchisees and Creative Learning can further develop their businesses.
- Tremendous Market Opportunity. Relative to its current base of 550 franchises, the addressable market for Creative Learning’s concepts is significant. In the U.S., its after-school programs can target approximately 230,000 pre-K, elementary and middle schools versus the roughly 7,000 that we estimate the company covers currently. Additional opportunities include birthday parties, summer camps and the edutainment industry, each of which represents a multi-billion dollar market.
- New Franchise Concepts. Following on the success of Bricks 4 Kidz, its LEGO-based program, Creative Learning began selling franchises for Challenge Island, a team-based concept similar to the TV reality show “Survivor”, in FY 2013. In addition, the company is planning sales of Sew Fun Studios, a sewing-based brand, in FY 2014. Given its track record, management should be able to bring both of these franchises up to scale fairly quick, which would have a meaningful positive impact on the company’s financials.
The report is available here: CLCN Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms.
Please review important disclosures on our website at http://www.seethruequity.com/.
About Creative Learning Corporation
Creative Learning Corporation, operating under the trade names of Bricks 4 Kidz(r) and Challenge Island(r), offers educational and enrichment programs to children ages 3-12+. Through a unique franchise business model that includes a proprietary curriculum and marketing strategies, plus a proprietary Franchise Marketing Tool (FMT), the Company provides a wide variety of programs designed to enhance students’ problem solving and critical thinking skills. Creative Learning Corp is now operating in 27 countries.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit http://www.seethruequity.com/.