AUGUST 25, 2000 ---LWRD---
August 25, 2000
Many times you will see companies fall from the OTCBB to the dreaded Pink Sheets where they will remain month after month without any real signs to get themselves back trading on the OTCBB. For once it is encouraging to see a young company take the necessary steps and prove to the financial world that they are serious about running their business in a proper and professional manner.
Well today we believe we have just such a company for you. On August 2, 2000 Learner's World Inc. (LWRD) announced that its registration statement has successfully cleared comments from the SEC. Shortly thereafter on August 9, 2000 LWRD commenced trading on the OTC-BB.
From August 9, 2000 to date, LWRD had a low of .37 and a high of $1.12. Looking at the company's recent filings and business model we do not see anything that would affect why the stock could not reach the $1 to $1.25 target again. Barring any drastic downturn in market conditions, we base this target on the company to remain on the OTCBB and keep up to date on the filings to stay fully reporting. Also, we expect Learners World to carry out their marketing goal to create more awareness and revenues for their company and in-turn create awareness for the company's stock itself for the private and institutional investor.
Learners World Inc.
Ticker Symbol: LWRD
Current 14 Day Price Range: .37 - $1.12
Objective Target: $1 - $1.25
Target Term: 3 Months
Shares Issued & Outstanding: 10 Million
Shares Authorized: 20 Million
Estimated Float: 3.5 Million
Web Site: http://www.learnersworld.com
Get Quote: http://www.bell2bell.newsalert.com/bin/stocknews?Symbol=lwrd
Recent Event: August 18, 2000, FinanceWebsite.com Announces Exciting NEW Interview with President & CEO of Learners World.
Go here to listen to what he has to say; http://www.financewebsite.com/main.html *******************************************************
-About Learner's World
The Company was formed on June 28, 1996, with the intent to own and operate facilities for the care, education and recreation of children. In December 1996, the Company acquired three children's care and learning facilities from three affiliated corporations for a four year note of $775,000, bearing interest at the rate of 7% per annum. The Company's facilities are at the following locations in the New York metropolitan area: (i) 369 Avenue U, Brooklyn, New York, established in May 1993; (ii) 1535 First Avenue, New York New York established in September 1994, the Company has since moved the location of this facility to 432 Lakeville, Lake Success, New York 11402; and (iii) 208-34 Cross Island Parkway, Bayside, New York, established in June 1994.
The Company provides the following services for children and students:
(1) day care and recreational services for children between the ages of two and one-half and ten,
(2) academic tutorial services for students of all ages through high school,
(3) instruction in computer skills and functions for students and adults, and
(4) psychological diagnostic and remedial services for children, provided through licensed consulting professionals.
The Company's earns revenue from tuition and fees, generally charged on an hourly basis for day care, tutoring and computer instruction. Charges for diagnostic and treatment services are also currently made on an hourly basis. Although the Company's family entertainment centers, which include locations in Manhattan, Brooklyn and Queens, are financially solvent, the addition of child care, tutorial and computer instruction has enhanced revenue as these programs operate mostly during the hours when the play activities are minimal. All of these services are easily and logically merged. They are compatible in both theme and space utilization.
The Company's new web site became fully operational in January of 2000 and is located on the Internet at www.learnersworld.com. Through this web site the Company plans to offer to the public a location on the Internet where the customers can prepare for tests such as the SAT and other educational exams including but not limited to medical, law, and business. The site will be designed to help customers prepare for vocational tests, such as civil service, post office, park ranger, police or firefighters The Company also hopes to be able in the future to offer courses in other professions such as insurance agent, stock broker, or real estate agent. The Company intends to bring this content to the Internet and pair it with existing and emerging software to create an exciting interactive on line learning environment.
-The Company's Concept
Test preparation courses for both education and vocation. Prepare for tests such as the SAT and other educational exams for Medical, Law, MBA, GMAT, etc. Also, prepare for vocational tests, such as Civil Service, Post Office, Park Ranger, Police or Firefighter. We also offer courses in other professions such as Insurance Agent, Stock Broker, Real Estate Agent, etc. In addition, stay informed about our exciting new corporate training program. All test preparation courses will be interactive with live chat rooms and instructor availability. Each courses includes simulated test environments for time and content as well as a specific section on test taking techniques for that particular exam.
*Test Peparation when you are ready, 24 hours a day, 7 days a week
*Share notes, experiences and techniques in live chat rooms.
*Prepare for exams in education and vocation.
Current Test Being Offered By Learners World Include
S.A.T. * GRE * Postal * Civil Service Clerical Abilities * MCAT * Resume Exam * Clerical Abilities General * Notary Public Test * English Regent * Resume Exam * Practice for the Cosmetology * Licensing DANTES * Health Insurance Primer * Life Insurance Primer * Series 63 * Series 6 * United State Citizenship Practice Test * Law Enforcement Study Guide * Trivia * Series 7 Group * New York City Fire Guard * Real Estate Broker's Exam * Librarian Civil Service Exam * CLEP * National Teacher Exam * Personnel/Human Resources Management
Learner's World target market is growing as factors including downsizing, welfare to work-fare programs, the need for more skilled and better trained workers and a competitive workplace puts an emphasis on lifetime learning and successful test taking. Also, corporations are looking for cost efficient methods to train their employees around the country and the world. Individuals are looking for ways to increase their academic credentials and work environment by moving on to higher education and more responsible positions. Many of these activities start with the need to take an exam of some kind, for which, Learner's World will help to prepare them. These customers need to fit education into their busy lifestyles. Learner's World combines current technology with well designed test preparation and training materials for academic, vocational, professional and health care learning as well as custom designed courses for corporate training.
According to the company's research, Learner's World target customers are showing a growing interest in this type (Internet based) educational format, categorized as distance learning. The increased level of advertising by degree granting colleges and universities is making more and more people aware of the benefits and legitimacy of distance learning via the Internet. Internet World magazine gives examples of "The Internet Education" which included online degree programs offered by traditional institutions such as Penn State and Indiana University, as well as nontraditional entities such as University Online and the Global Network Academy. Businesses see profits in the estimated $670 billion the United States spends on education each year (growing about 3% a year) and the 67 million students in the United States alone.
-Competition Learner's World competition has yet to offer their unique mixture of content and format. Universities and colleges use the Internet for distance learning courses, but they do not provide test preparation and career development content. Companies offering test preparation continue to do so in the traditional format. They are just beginning to formulate distance learning strategies. None of them offer vocational test preparation. This gives Learner's World a unique opportunity to define standards and become market leaders. Lotus Development Corporation, a major division of IBM Corporation, says that advances in educational technology will prove useless, unless companies step forward and combine technology with content and deliver it to the end user. That is exactly what Learner's World intends to do.
Learner's World strategy is to offer an extensive array of test preparation and training courses covering needs in academics, health care, vocations and professions in a dynamic and enjoyable fashion. A separate segment of the web site will deal with custom designed training and test preparation courses for private industry, government agencies and unions. Learner's World will create brand recognition by implementing an aggressive advertising campaign emphasizing our benefits including quality content, a learner community, support services, and a high level of interaction.
-Pricing for Product
Learner's World pricing policy will make their site an enticing alternative to traditional methods of learning (i.e. classroom and home study) while still providing appropriate profit margins. Approximately 60% - 70% of the company's offerings will be priced between $49.95 and $69.95 giving them an average of approximately $60. It should be noted that with an average price of $40, Amazon.com, a high flying Internet stock, has sales approaching $400 million. Due to the company's low entry price, it is possible that even when they are not the first choice, Learner's World may still be a viable adjunct to the chosen method, thereby giving them the same sales dollars as if the company were the first choice.
-Results of Operations
During the second quarter of 2000, the Company continued to improve its financial condition. The Company increased its revenues over the comparable quarter and six month period in 1999. As a direct result of increased revenues for the second quarter of 2000 and the year ended December 31, 1999, the Company's overall financial health is improving.
- Revenues Three Months ended June 30, 2000 and Six Months ended June 30, 2000. Gross revenues for the three months ended June 30, 2000 were $365,581 compared to $323,586 for the same period in 1999, an increase of $41,995. The gross revenues for the three months ended June 30, 2000, were higher than the comparable three months in 1999 due to an increase in tuition and fees collected from an increased number of students. Gross revenues for the six months ended June 30, 2000 were $755,766 compared to $662,428 for the same period in 1999, an increase of $93,338. The gross revenues for the six months ended June 30, 2000, were higher than the comparable six months in 1999 due to an increase in tuition and fees collected from an increased number of students. Costs of revenues were $199,610 for the three months ended on June 30, 2000, compared to $241,658 for the comparable period in 1999, a decrease of approximately 17.4%. Operating loss was $48,435 during the three months ended on June 30, 2000, compared to an operating loss of $173,625 for the comparable three months in 1999. The Company's operating loss decreased $125,190 or 72% for the three months ended June 30, 2000 because of a decline in cost of revenues and General and Administrative costs coupled with an increase in revenues. Operating loss was $159,540 during the six months ended on June 30, 2000, compared to an operating loss of $283,800 for the comparable six months in 1999. The Company's operating loss decreased $124,260 or 43.8% for the six months ended June 30, 2000 because of a decline in cost of revenues and General and Administrative costs coupled with an increase in revenues. Management's plan to address the Company's ability to continue as a going concern, includes: (1) obtaining additional funding from the sale of the Company's securities; (2) increasing sales; (3) obtaining loans and grants from various financial institutions where possible.
-Potential Future Market Outlook
* Family PC Magazine estimates that 1 million students are taking distance learning classes via the Internet. The International Data Corporation estimates that the number of college students enrolled in online courses will reach 2.2 million by the year 2002. We believe the private/public sector growth of test preparation and training will be following close behind.
* In addition to all of this, market trends show that almost every school in the United States will have a computer. This means that accessibility will be a non-issue and that those coming of age to utilize our products will be computer and Internet literate and accustomed to using the Internet as a learning tool.
* Corporate America is also showing a growing interest in distance education. Faced with retraining an estimated 50 million American workers, corporations are using distance learning in all aspects of training, both internally and externally. Many major corporations like Hewlett-Packard save millions of dollars each year using distance education to train employees more effectively and efficiently than traditional methods.
* Within our area of interest alone, budgeted spending on formal training by U.S. organizations with 100 or more employers topped $60 billion in 1998 and is estimated to grow to $62.5 billion in 1999. That is a 3.5 percent rise over the previous year and a 29 percent increase since 1993, with neither figure accounting for mild inflation. As always, salaries paid to internal training staff make up the bulk of the budget. This salary total is up 2.4 percent over the previous year and is now in excess of $43 billion. The fastest growing segment, however, is outside expenditures and the $15 billion spent on the commercial training market is a significant increase from 1998 (Training Industry Magazine 1999).
* Add to this the amount spent by companies with under 100 employees and for test preparation of all kinds and we believe the total market will exceed $85 billion. It is easy to see that we only need a small portion of this market to be hugely successful.
Latest Press Release
Aug 15 Learner's World Inc. - Quarterly Report (form 10-QSB)
Aug 2 Learner's World Inc. Clears SEC Comments
May 22 Learner's World Inc. - Quarterly Report ( form 10-QSB)
369 Avenue U, Brooklyn, NY 11223
With so many choices in young startup companies that investors have to choose from, it is difficult to make the decision on what company/s you want to invest your money in. You want to look for a good business model with a bright future, possibly a qualified company that could achieve government funding if need be. There can not be much doubt that the Internet is being utilized more and more everyday for people's needs, and education and learning is certainly one of them. We will be watching Learners World and will expect this company to move forward and carry out their business objectives. Currently at roughly .50 per share we feel this is one company to give a chance too. #######################################################
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