GNS: GNS Adds to Educational Offering

·3 min read

By Brad Sorensen, CFA



Genius Group (NYSE:GNS) continues to grow its educational offerings, while fine tuning its holding to allow the company to focus on its core business of attempting to revolutionize the education business. And given the evolution of the economy that has occurred over the past decade, the company’s focus on creating an environment where students can go on to create their own job instead of relying on the increasing fickle corporate environment. We continue to be impressed with management’s focus on the goal of personalizing the learning experience and making it a lifelong process and believe a couple of recent moves further enhances those objectives:

1. The company announced, subject to shareholder approval, that it was spinning off its Entrepreneur Resorts Unit. While we were impressed with the unit’s offerings and believe it has a good chance to be a successful stand alone business, we are happy to see this proposal and hope and expect that shareholders will approve this move. To us, the Resorts Unit never really fit in with the core educational mission of Genius and that it would ultimately prove to be more of a distraction than a benefit. Management seemed to agree and will spin off the unit, allowing Entrepreneur Resorts to operate independently, while allowing Genius to focus on its core educational offerings—a benefit, we believe, for all parties involved.

2. Genius also announced that it is launching an International Doctor of Business Administration (DBA) program in partnership with the Swiss School of Business and Management (SSBM). We believe this has the potential to be a very beneficial partnership for the company. SSBM is accredited by the Accreditation Council for Business Schools and Programs. The company states that is will now offer “what it believes to be one of the highest postgraduate degree in academic management education, with a focus on entrepreneurship.”

This program opens up what we believe will a new and profitable client base as senior professionals look to advance their careers in an interesting and rapid way. The 24-month program will feature faculty from the University of Rome, University of Florence and Penn State—among others. We believe that global perspective from a respected institution given in a cutting-edge way will prove to be quite attractive to those looking to advance to the advanced executive levels.

Finally, we want to acknowledge that the company’s CEO, Roger Hamilton, has made multiple moves in an effort to halt any potential stock manipulation. Recently, the company offered credit for use at its educational offerings to shareholders and has retained legal council and filed suit against those the company believes have been manipulating the stock. We continue to hold no position on the validity of any accusations or the legal merits of any lawsuits, but we do applaud the effort to defend investors in the company and reward those who stick with the stock.

We continue to believe that Genius is transforming the educational process and preparing students for the 21st century economy that is developing. We suggest investors with a slightly higher risk tolerance, take a look at GNS. We believe GNS is vastly underpriced and that accelerating student growth will propel the stock forward in the foreseeable future.

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