Despite news of multiple acquisitions and a soaring stock price, the analysts of Taking Stock say they will need to see improvement in education training company iCreate’s financials before declaring that it has made a turnaround.

After trading around the 80-90 cents range since last year, iCreate ended last week as the Jamaica Stock Exchange’s biggest gainer after a second straight week of increases, jumping 146 percent to open on April 25, 2022 at $3.05.

The increase followed news that iCreate had acquired a majority stake in payment gateway company GetPaid, and a new residential development in St Ann.

Speaking on Taking Stock with Kalilah Reynolds, Senior Wealth Advisor at Ideal Securities Brokers, Orick Angus said that the news of the acquisitions are the main reasons the stock price has appreciated over the past few weeks. 

“It’s clear that the company is on a different growth path, where they are trying to diversify their revenue streams,” he noted.

At its core, iCreate is an institute focused on training people in the growing digital media space. The company offers over 200 internationally certified courses. 

However, operations took a major blow during the COVID-19 pandemic, since the company was unable to conduct its physical and hands-on training courses.

“As Tyrone [Wilson, CEO of iCreate] said, COVID-19 has changed a lot for the company and they had to reposition certain things and think of innovative ways to diversify their revenues,” Angus said.

He added that the company’s first quarter financial reports have been delayed and the cost of both acquisitions have not been released. He said that a closer look at those numbers will be needed before any true comment can be made on the valuation of the company.

Assistant Manager of Private Equity at PROVEN Management, Julian Morrison echoed similar sentiments. He said that there has yet to be any material change in the company’s financial position and the ‘turnaround’ is not concrete.

“Investors who are looking for the long-term, should look for the numbers to start to turn. Because when a company is turning its fortunes, we have to ensure that the numbers reflect the intention of management,” he said. 

He noted that it might take a while before the announced projects begin to bear fruits. 

“Announcements are simply not enough for investors who are actually looking at fundamentals,” he said.

Morrison also noted that the company has seen a change in personnel, which he said could also impact the company’s numbers as it can take team members some time before their visions and work ethics align. 

However, he said he believes iCreate’s best days are ahead of it, noting that the company is very young and many investors have shown confidence in CEO Tyrone Wilson and his ability to turn things around.

Watch THE ANALYSTS on Taking Stock with Kalilah Reynolds every Tuesday at 8pm on YouTube and kalilahreynolds.com

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