Four ASX shares that have failed to follow the market's lead are listed below. Here's why they are falling today:

3P Learning Ltd (ASX: 3PL)

The 3P Learning share price is down almost 3% to $1.05. This follows the release of the education technology company's full year results. 3P Learning reported a 2.5% increase in revenue to $110 million. This fell short of its guidance for revenue of $112 million to $115 million. Also falling short of guidance was its EBITDA, which dropped 24.3% to $12 million. This compares to its guidance of $13 million to $15 million. No guidance has been issued for FY 2025, but management "expect both revenue and Underlying EBITDA to be better than FY24 performance."

Amcor (ASX: AMC)

The Amcor share price is down 3% to $15.66. Investors have been selling the packaging company's shares following the release of its full year results. Amcor reported a 7% decline in net sales to US$13.64 billion and a 1% decline in adjusted earnings before interest and tax (EBIT) to US$1.56 billion. The good news is that following a positive finish to the year, management is expecting an improved performance in FY 2025.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down 3% to $2.77. This is despite the fund manager reporting very strong revenue and profit growth in the first half of FY 2024. GQG Partners posted a 53.1% increase in net revenue to US$363.1 million and a 54.9% lift in net operating income to US$273.2 million. While this is clearly very strong growth, it may still have fallen short of expectations. For example, analysts at Morgans were expecting net operating income growth of 65% for the half.

PWR Holdings Ltd (ASX: PWH)

The PWR Holdings share price is down 17% to $9.75. This follows the release of the automotive cooling products provider's full year results. PWR delivered record revenue and profits for the 12 months ended 30 June. Revenue was up 17.8% to $139.4 million and net profit after tax rose 14% to $24.8 million. However, this appears to have been short of expectations. Bell Potter was forecasting a net profit after tax of $26.8 million. It was also forecasting margin expansion in FY 2025. However, management has warned that its margins will be impacted by further investments.

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After all, when an ASX All Ords company sees its own insiders buying up shares, it gives shareholders a lot of confidence that management is putting its money where its mouth is.

Conversely, significant insider selling can undermine shareholders' confidence in a business, and lead to investor questions about its future.

So today, let's check out the recent insider trading over at one ASX All Ords share, and see what it can tell us.

3P Learning Ltd (ASX: 3PL) is an All Ords online education company, providing learning products and services to schools, parents, and students.

Its last earnings report was quite an event, with 3P Learning reporting an 18% rise in revenues to $52.6 million for the first half of FY2023, as well as a whopping 205% surge in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $5.8 million.

Just last week, the company also updated its full-year guidance for FY2023, revealing an expectation of between $106 and $108 million in revenue for the year, as well as between $15 and $18 million in underlying EBITDA.

So what do we have to report on 3P learning this week?

ASX All Ords share sees director drop $1.2 million

Well, after trading had concluded last Friday, 3P revealed that its non-executive director Craig Coleman had purchased an additional 1.11 million 3P shares between 23 and 30 June 2023 in a series of on-market trades through a fund manager he founded called Viburnum Funds.

Coleman (or Viburnum) paid just over $1.22 million for these trades all up, taking the total shareholding to 53.7 million shares.

So perhaps 3P Learning investors will be buoyed by this news. After all, it does show a significant financial commitment from one of the company's most prominent insiders. No one could fault Coleman for not putting his money where his mouth is here.

But on the other hand, 3P Learning hasn't exactly been bringing home the bacon in recent years. 3P shares are down more than 11% over 2023 so far and around 97% lower over the past 12 months. This All Ords share also remains around 5% lower than where it was five years ago, as you can see below:

It will be interesting to see where this All Ords share goes from here.

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3 ASX All Ords shares bought and sold by insiders this week

3P Learning Ltd (ASX: 3PL)

There've been some big parcels of 3P Learning shares swapping hands among the All Ords company's directors recently.

Non-executive director Craig Coleman was a buyer last week, snapping up 1.4 million stocks in the online education resources provider for a grand total of around $1.68 million – approximately $1.20 apiece.

On the other side of the fence, managing director and co-founder Matthew Sandblom offloaded 913,000 shares for close to $1.1 million ­– or $1.20 apiece. Sandblom still holds around 136 million shares in the company, representing a 49% stake.

And so far, neither director has realised any gains or missed opportunities. The All Ords share is still trading at $1.20 today.

Orora Ltd (ASX: ORA)

Over at All Ords packaging company Orora Ltd, CEO and managing director Brian Lowe has been selling shares.

The company's boss sold 95,000 shares on market a week ago and transferred another 170,000 between his direct and indirect holdings. Each stock he sold saw him receive $3.50, for a total of $332,500.

The Orora share price is trading 3% lower at $3.40 today.

Lycopodium Ltd (ASX: LYL)

Finally, ASX All Ords engineering company Lycopodium has also been the subject of recent insider selling.

Founding partner and non-executive director Rodney Leonard sold a 100,000-strong parcel of the company's stock for a grand total of around $1 million last week. That means each share was offloaded for approximately $10.12.

That's seemingly unfortunate given the Lycopodium share price is trading at $10.59 at the time of writing.

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3P Learning Ltd (ASX: 3PL), OM Holdings Limited (ASX: OMH), and GQG Partners Inc (ASX: GQG) shares are all surging today.

Let's take a look at what is impacting these ASX All Ords shares.

OM Holdings

OM Holdings shares were leaping by 19% earlier in the day. They have since pulled back but are still 12.06% higher than Thursday's close, at 76.2 cents. For comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) is 1.79% in the green today.

OM Holdings produces ferrosilicon (FeSi) and manganese. In a presentation late last week, the company advised it is on track to meet its 2022 production guidance of 340 to 360 kilotonnes per annum.

In the September quarter, the company's FeSi production lifted by 6%. However, manganese allow production fell by 11.1%.

3P Learning

3P Learning shares are currently soaring by 13.15% to $1.42, having earlier been up almost 19%.

The ASX All Ords share is a global online education company providing e-learning programs in mathematics, spelling, reading, phonics, and literacy.

Overnight, news emerged the global online tutoring market could reach US $19.47 billion by 2030 at a compound annual growth rate of 13.5%. Online learning demand has soared since COVID-19 school closures.

3P Learning will hold an AGM on 16 November in Sydney.

GQG Partners

Global asset management firm GQG Partners shares are currently leaping 6.57% today to $1.46. For perspective, the ASX 200 Financials Index (ASX: XFJ) is 0.49% in the red today.

The GQG Partners Global Equity Fund holds shares in Exxon Mobil Corp, UnitedHealth Group, AstraZeneca, and HDFC Bank, among other shares.

In an article yesterday, my Foolish colleague Tristan recommended investors buy the GQG partners share price. He highlighted this ASX dividend share aims to distribute 90% of its earnings to investors.

The ASX All Ords share declared total dividends of US$0.0182 per share on 18 October.

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• Back in 1996 Apple was put back on track by the return of its founder, Steve Jobs.
• One ASX software share is taking similar action after merging with another one of its founder's companies
• A portfolio manager has shared his prediction for at least a 65% upside in the medium term

There is one ASX share currently walking a similar path to what Apple Inc (NASDAQ: AAPL) did before it became a US$2.83 trillion icon.

For those of you unfamiliar with the Apple of 1996, it was the year the late and great Steve Jobs made a return to the US tech company. At that time, the business was a far cry from the iconic electronic consumer device maker that is known for being today. Instead, the company was in turmoil after Jobs left years earlier.

After struggling for years in Jobs' absence, the Apple board struck a deal to merge with the computer company Jobs had created after leaving Apple known as NeXT. Following this, the visionary brilliance of Jobs went on to shine — and the rest is history.

However, it is an ASX share that is resembling a modern-day equivalent of Apple.

Which ASX share is using Apple's 1996 playbook?

While the name Matthew Sandblom may not be as recognisable as Steve Jobs, his return to 3P Learning Ltd (ASX: 3PL) is reminiscent.

Sandblom originally founded the teaching software company back in 2003 with Shane Hill and Tim Power. From its inception, the educational product provider took off with its Mathletics offering, landing deals across Australia and internationally.

Unfortunately, momentum unraveled following the departure of the company's original founders. In 2014 3P Learning made its debut on the ASX. Since then, profitability has been patchy despite a steady top-line throughout the years.

This lack of direction for the company's educational products and growth was reflected in the share price. Between 2018 and 2020, the 3P Learning share price fell approximately 50%.

In an attempt to avoid an opportunistic takeover from competitors, Sandblom took action and merged his second education venture — Blake Elearning — with 3P Learning. In the process, the original founder has resumed the position as chair. Additionally, Sandblom is now 3P Learning's largest shareholder with a 49% holding in the company.

Taking a leaf out of Jobs' book, Sandblom has shaken things up since his reunion with 3P. For example, around $9 million worth of synergies have been realised and co-founder Shane Hill has rejoined the business.

Already, the entrepreneur has mapped out a more ambitious future for this ASX share. The merged company is targeting a less price-sensitive market through direct-to-consumer (parents). On top of that, the company plans to overhaul Mathletics with updates — preparing the educational product for market share growth.

A fundies price forecast on this Apple-like hopeful

In an article published on Livewire, Schroders portfolio manager Ray David took a stab at what 3P Learning could be worth in the medium term.

While the company is projecting revenue of $92.3 million to $97.2 million in FY22, David sees the potential for 3P to be pulling $130 million to $150 million in the medium term. This is based on the company landing a few countrywide deals for its software.

From there, the fundie applies an earnings before interest and tax (EBIT) margin of 25%. On an EBIT multiple of 20 times this would place this ASX share between $2.40 to $2.80 apiece. For reference, the current 3P Learning share price is $1.70 — suggesting a potential upside of ~65%.

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ASX shares that could outperform the market 

3P Learning Ltd (ASX: 3PL) 

3P Learning announced on Monday that it will acquire 100% of Blake eLearning to emerge as a leading educational technology platform. 

Morgan Stanley views this as a positive transaction in terms of scale, product mix, customer mix and potential for meaningful revenue and cost synergies. 

The broker's commentary does note some slight caution towards Blake eLearning, which seems to be cycling a period of accelerated COVID-19 sign-up. This could result in a higher churn rate and flatter growth in the near term. 

Morgan Stanley maintained its overweight rating and increased its target price from $1.50 to $1.60. 3P Learning shares are currently trading at $1.30. 

Aristocrat Leisure Ltd (ASX: ALL) 

Aristocrat Leisure has arguably received the most broker updates of all ASX shares this month. This includes updates from April 7, April 9 and April 13. The big broker narrative typically highlights a bounce back in its core casino machines business and acceleration in its digital gaming revenues. 

On Tuesday, Credit Suisse points out that Apple Inc (NASDAQ: AAPL) was named the defendant in six lawsuits filed in United States federal courts alleging casino-style app games that allow users to purchase virtual coins, and pay money to win more playing time, constitutes unlawful gambling in certain US states.

The broker believes that Apple may have to restrict or alter its distribution of mobile gambling games. 

Overall, Credit Suisse remains bullish on Aristocrat shares, retaining an outperform rating and $38.00 target price. The Aristocrat share price is currently fetching $36.14, within arm's reach of its all-time record high of $38.00. 

BlueScope Steel Limited (ASX: BSL) 

Macquarie upgraded its earnings estimates in the second half to $919.4 million. The broker believes a rally in steel prices have been underpinned by favourable market dynamics including a consolidating global steel industry, high utilisation and strong demand. 

Macquarie's commentary notes that there are risks associated with a potential rollover of steel prices, but believes strong earnings momentum can continue in the near term.

An outperform rating was retained and target price raised from $21.65 to $23.50. BlueScope shares are currently trading at $20.30. 

Mach7 Technologies Ltd (ASX: M7T) 

The Mach7 share price jumped as much as 14% yesterday after the company announced record quarterly results. After assessing the third-quarter results, Morgan Stanley was pleased with its $12.8 million in new sales orders for the quarter from both new and existing customers. This represents a significant uplift from the $7.6 million in the second quarter. 

The broker made no changes to its forecasts, retaining an add rating with a $1.68 target price. Mach7 shares have retreated 2.55% on Tuesday to $1.34. 

Mineral Resources Limited (ASX: MIN) 

Macquarie upgraded a number of ASX lithium shares on Tuesday including heavyweights Galaxy Resources Limited (ASX: GXY), Orocobre Ltd (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS). 

The broker lifted its lithium price outlook and expects Mineral Resources' to begin producing lithium hydroxide in FY22. Macquarie believes that buoyant iron ore prices will support Mineral Resources in the near term while its entry into lithium production will drive medium to long term value. 

Macquarie rates Mineral Resources as outperform and lifted its target price from $50 to $61. Mineral Resources shares are currently trading at $40.85. 

The post Big brokers think these 5 ASX shares can outperform the market appeared first on The Motley Fool Australia.

This comes following the ASX education software company reporting on a merger this morning alongside a key resignation.

What did 3P Learning report on a merger?

3P Learning shares are moving higher this morning after the company reported its intent to merge with Blake eLearning Pty Ltd.

The merger, intended to create a leading EdTech platform (MergeCo), will see 3PL acquire 100% of the equity in Blake for an all-share purchase price equivalent of $185 million. 3PL stated it will issue 137 million shares at $1.35 per share. That's 7.14% above Friday's closing price of $1.26 per share.

Blake is a privately owned Australian based company that provides online educational tools for young children through to year 10 students.

3PL stated that the two companies have identified "significant synergies and strategic cost efficiencies" in the range of $7.5 to $12.5 million annually.

Commenting on the merger, 3PL chair Sam Weiss said:

The proposed merger provides an opportunity to unite two complementary businesses with a long-standing relationship which, if approved, should propel 3PL's current growth trajectory and broaden its customer reach.

The merger still requires shareholder approval of more than 50% at a general meeting the company expects to take place in mid to late May. The 3PL board is unanimously in favour of the merger.

3PL CEO resigns

In a separate announcement this morning, 3PL reported it has accepted the resignation of the company's CEO and managing director, Rebekah O'Flaherty.

O'Flaherty will remain in her role for the next two months, working with Sam Weiss during the transition period for the acquisition of Blake.

Commenting on O'Flaherty's departure, Weiss said:

In the five years of her tenure as CEO, Rebekah has overseen a major transformation of our company with the overhaul of our technology platform, the modernisation of digital engagement tools and improvements to our product offer.

3P Learning share price snapshot

Over the past 12 months, the 3P Learning share price has gained around 53%. By comparison, the All Ordinaries Index (ASX: XAO) is up 31% over that same time.

Year to date, the 3P Learning share price is up 3%

The post Why the 3P Learning (ASX:3PL) share price is soaring 7% today appeared first on The Motley Fool Australia.

At close of trade today, the 3P Learning share price was up 12.3% at a price of $1.37.

3P Learning is a global online educator with cloudbased, software as a service products. The tech company offers courses in numeracy, literacy and science for students ranging from kindergarten to year 12.

Blake merger proposal

The 3P Learning share price surged higher today after the company entered into a non binding term sheet to pursue the merger. Under the agreement, 3P Learning will acquire 100% of the equity in Blake in exchange for 137 million shares. The deal is subject to satisfactory due diligence by both parties and subsequently entry into definitive documents.

Assuming a $1.35 issue price, the merger will cost 3P Learning $185 million. The purchase price assumes Blake will have an appropriate level of working capital at completion and will be adjusted for excess cash and debt. As a result, on completion of the merger, owners of Blake will hold a 49.5% stake in the company.

Furthermore, on completion of the deal a number of Blake's management team will join 3P Learning. Blake founder and executive chair Matthew Sandblom will join the board as non-executive chair while Blake CEO Jose Palmero will become interim CEO of 3P Learning.

More about Blake

Blake is a privately owned, Australian publisher of online education products similar to 3P Learning. It's core literacy product Reading Eggs was launched in 2008 and is used by more than 3.4 million users in 169 countries.

What's more, the two companies have a long-standing relationship dating back to 2014, before 3P Learning's initial public offering (IPO) days.

An earlier takeover bid fails

Back in November last year, the 3P Learning share price soared 13% higher on news of a 100% takeover bid by Indian company BYJU.

This has not transpired. After completing due diligence towards the end of 2020, BYJU did not provide a firm proposal for 3P Learning's consideration. As such, given the exclusivity agreement now signed with Blake, the company will cease further engagement with BYJU at this time.

What now

The due diligence process is expected to will take about six weeks. Should the parties then enter into a binding agreement to implement the merger proposal, the transaction will be subject to shareholder approval at a general meeting.

3P Learning will update the market as soon as it has additional information to share with investors. However the company reminded shareholders that there is no certainty the agreement will result in a binding transaction.

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But today's moves are just another good piece of news for 3P Learning shareholders. The share price was already up 42% year to date before today's jump and is now up 60% year to date, and up more than 100% since the lows, we saw in March. However, it's worth noting that 3P only hit the ASX boards back in 2014, and, as of today's share price, remains more than 40% below the company's IPO price.

So what is this learning company? And why has the 3P share price rocketed more than 12% today?

What is 3P Learning?

3P Learning describes itself as a "global leader in online education". The company offers a suite of learning resources "designed for schools and families", which cover spelling, literacy and numeracy. 3P Learning was founded back in 2005 and boasts some high-profile partners, including Microsoft Corporation (NASDAQ: MSFT), the British Educational Suppliers Association and Unicef.

The company offers a range of software programs that aim to assist students with reading, writing, spelling and mathematics. These include the flagship Mathletics program, as well as Readiwriter, Reading Eggs and WordFlyers.

The company is a truly global player. In its earnings report for the 2020 financial year, the company advised that it received 51% of its revenue from the Asia Pacific region, with 20% hailing from the Americas and 29% from Europe, the Middle East and Africa. In the same financial year, the company derived 69% of its revenue from 'mathematics' programs, and 31% from literacy programs.

Why are 3P shares rocketing today?

The company made an announcement to the markets this morning before open. This news was the 'receipt of a non-binding' acquisition proposal for 3P, launched by a private Indian tech company called Think and Learn Private Ltd (which apparently operates under the name BYJU). Think and Learn Private operates in a similar sphere to 3P Learning and "provides programs in the K-12 segment".

The proposal is for Think and Learn Private to acquire 100% of 3P Learning's shares for a price of $1.45 a share, to be paid in cash.

The board has yet to review or recommend the proposal to shareholders and notes that the proposal, "is subject to a number of conditions, including completion of satisfactory confirmatory due diligence within a 4-week period, a unanimous recommendation from the 3PL Board and entry into a scheme implementation agreement". Think and Learn Private will also have to obtain approval from the Foreign Investment and Review Board.

This isn't the first time 3P Learning has had a suitor at its door. Back in August, the company received another takeover bid, this time from private US company IXL Learning. That bid involved a $1.35 per share offer, (which has now been approved by the Foreign Investment and Review Board) which the board subsequently recommended, "in the absence of a superior proposal".

It seems 3P Learning shareholders now have just that. 

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An ABC News article recently shed light on the surging demand for academic tutors. In addition, the article touched on the inadequacy of some academic school curriculums.

Some ASX education shares could be poised to benefit from the surging demand for academic tutors and support services.  

What's fuelling the demand for tutors?

According to the ABC article, the COVID-19 pandemic has revealed glaring holes in Australia's educational system.

With lessons moved online during the height of the pandemic, some parents were confronted by how far behind their children were with schoolwork.

In order to compensate, many parents have turned to tutoring services for additional educational resources. Some tutoring services have doubled the number of children on their books since the pandemic began.

The pandemic has also prompted a review of school curriculums.

The Australian Curriculum Assessment and Reporting Authority announced a review of the national prep to year 10 curriculum in June. The aim of the review is to streamline student workloads and lessons.

Given the weaknesses exposed in the education system, there are some companies listed on the ASX that could potentially help fill in the gaps.

Which ASX education shares could benefit?

3P Learning Ltd (ASX: 3PL) is an online education platform that offers a range of resources covering core subjects such as mathematics, spelling, literacy and science. 3P Learning's platform currently boasts more than 5 million students from more than 17,000 schools around the world.

The company released its FY20 report last month and also revealed a takeover bid from United States-based IXL Learning. For FY20, 3P Learning recorded an 18% decline in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $14.6 million. 

3P Learning cited an increase in sales and marketing expenditure in the Americas region for the lacklustre performance. Despite a weak financial performance, 3P Learning reported promising customer retention in the Asia Pacific, Europe, the Middle East and Africa markets.

Kip McGrath Education Centres Limited (ASX: KME) is another company that could benefit. Kip McGrath provides tutoring to primary and secondary students for a wide range of core subjects. The company operates on a franchise business model with operations in Australia, the UK, South Africa and New Zealand.

Prior to the COVID-19 outbreak,  Kip McGrath provided 36,000 face to face lessons and 550 online lessons on a weekly basis. As a result of global lock-downs and social distancing measures, the company has expanded its online operations. In May, the company recorded a milestone of 20,000 online lessons while face-to-face tutoring dropped to 2,400 per week.

Kip McGrath has identified online tuition as a key market and growth opportunity that offers higher margins than traditional tutoring. As a result, the company completed a $5.9 million capital raise in June to accelerate the growth of its online platforms.

Foolish takeaway

The services provided by 3P Learning and Kip McGrath will not replace traditional teaching formats. However, they could become more popular as an auxiliary service. 

The convenience and high margins of online tutoring could also gain traction as they appeal to both customers and companies alike. The potential in this space has been reflected in the takeover offer for 3P Learning, with IXL's slapping an enterprise value of $166.7 million on the company. 

In my opinion, auxiliary education providers like 3P Learning and Kip McrGath are poised to boom in 2020 and beyond. 

The post Is it time to invest in ASX education shares? appeared first on The Motley Fool Australia.

Takeover bid

This morning, it was announced that 3P Learning is set to be taken over by rival IXL Learning. IXL is a privately owned, global online learning player. Founded in 1998 and headquartered in California, it is active around the world and already has an existing presence in Australia.

Under the terms of the scheme, each 3P shareholder will receive cash consideration of $1.35 for every 3P Learning share held. The consideration values 3P Learning's equity at approximately $189.0 million with an enterprise value (EV) of $166.7 million, implying an EV/EBITDA multiple of 11.4. The price represents a 23.3% premium to the last closing price. Furthermore the 3P Learning board is fully behind the takeover and suggests that shareholders vote in favour of the scheme.

Nevertheless, shareholders should note that the scheme is subject to certain conditions which must be satisfied before it is implemented.

How did 3P Learning perform in FY2020?

3P learning performed well in FY2020 despite the effects of the pandemic. The company managed to increase its revenue by 1% to $54.9 million despite challenging market conditions.

Revenue growth from licence sales was modest, as expected, with the Americas up 11% and Europe, the Middle East and Africa (EMEA) up 1%. Other revenue increased 12% due to an increase in copyright revenue.

Expenses were up 11% due to the increased average headcount in the Americas and increased product development to support the company's growth agenda. As a result, NPAT was down $4.3 million to $1.6 million. Moreover, as a result of increased expenses, profit for the year was down 73.8% to $1.55 million.

In terms of the balance sheet, 3P Learning has cash of $27.1 million with no bank debt. 

FY2021 outlook

3P Learning has announced that it expects double-digit revenue and EBIDTA growth in FY21. The cost base is now set and the company is aiming to deliver revenue growth with increased operating leverage. This increased leverage is set to drive growth at high margins similar to other software-as-a-service (SaaS) businesses.

3P Learning CFO, Dimitri Aroney, was optimistic looking forward and stated:

"In FY2021 we expect the EMEA market to deliver strong revenue and EBITDA growth as a result of the deal with a National Ministry of Education in the Middle East. In the APAC market, we expect single digit revenue and EBITDA growth for the full year. In the Americas market, we expect continued market uncertainty due to funding challenges as a result of COVID-19 however there is a pipeline of enterprise opportunities with an expectation of licence revenue growth for the full year."

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Why is the 3P Learning share price surging?

Since 3P Learning has not released any price sensitive news in the past 3 weeks, it could be assumed that investors are jumping on the company's shares as fears grow of a 'second wave' of the coronavirus pandemic. As a result, with a new school term beginning and debate lingering over whether kids should return, the services offered by 3P Learning could see greater demand.

3P Learning is an online education platform that offers a range of resources that cover core subjects such as mathematics, spelling, literacy and science. The company's platform currently boasts more than 5 million students from over 17,000 schools around the world.

How has this ASX share performed during the pandemic?

With many schools and institutions closing during the pandemic, there has been a rush to online education platforms. In a business update released in late April, 3P Learning reported an increase in demand for its products and services. According to the company's management, 3P Learning expanded its staff by 10% and released 10,000 new activities in order to accommodate the demand. 

In the company's most recent business update released in late June, 3P Learning announced a US$10 million agreement with the National Ministry of Education in the Middle East. The deal will see 3P Learning provide Mathletics licenses and professional development services over a 12-month period.

Should you buy?

The coronavirus pandemic has forced traditional teaching at schools and institutions to adapt to online modes of education. Although online education providers like 3P Learning won't be able to replace traditional teaching methods, they could serve as an excellent auxiliary service in the long term. Despite the optimism, it's also important to note the budget restrictions of education providers as they adapt to online education modes.

Personally, I really don't like buying ASX shares that have rallied so hard in a short period of time, instead I prefer getting set to invest when a company's share price is basing. I think a prudent strategy would be to either wait for the 3P Learning share price to consolidate or do further research on other education companies that could benefit in the short and long term.

The post This ASX share has surged 40% in 3 weeks appeared first on The Motley Fool Australia.

It doesn't take much to move share prices in this environment, and I think changes to broker recommendations will have an outsized impact on ASX share prices.

While the S&P/ASX 200 Index (Index:^AXJO) slumped by more than 2% in after lunch trade, the 3P Learning Ltd (ASX: 3PL) share price surged by a similar amount to 85 cents for this reason.

Education's priceless

Morgan Stanley upgraded the online education services group to "overweight" from "equal-weight" after secured a US$10 million ($14.6 million) revenue opportunity.

3PL will supply the ministry of education of a Middle East country with Mathletics licenses and services.

This is a significant deal given that the group posted revenue of $54 million in FY19.

While the agreement is for 12-months, there is scope to extend the term and to increase the number of licenses for the online math program.

Price target upgrade

Morgan Stanley believes the ministry wants 3PL to succeed, but just counting the one-year revenue, the broker's price target jumps to $1.10 from 86 cents a share.

"Initial evidence of sales execution, uplift in cash from service delivery and positive implications on strength of sales pipeline (with high incremental margins) suggests that 3PL is too cheap at <2x EV/Sales FY20e," said the broker.

"There are questions that need clarifying, but sales have improved significantly and the risk-reward is much more constructive now in our view."

Falling star

On the flipside, the Galaxy Resources Limited (ASX: GXY) share price came crashing back to earth after Credit Suisse downgraded it to "neutral" from "outperform".

Shares in the lithium miner tanked 4.4% to 76 cents at the time of writing as a result.

The broker's decision comes after it updated its estimates for Galaxy's Mt Cattlin project, moderating production and the weak outlook for the commodity, which is made worse by the COVID-19 pandemic.

Nearer-term challenges

This is despite Germany and China increasing or extending subsidies for electric vehicles. Lithium is a key component used in the batteries of these automobiles.

But Credit Suisse believes it will take time for these subsidies to make an impact on the demand-supply of the commodity.

"Sustained demand growth will be needed to absorb supply chain inventory and latent production capacity as a precursor to improved pricing," explained the broker.

"We estimate concentrate inventory held by [Australian] producers at ~130kt, but production utilisation of only ~55%, meaning there is >1.4Mt latent concentrate supply, equivalent to over half of 2019 global lithium production."

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Here are some of the changes that could last post-pandemic and the ASX shares that could benefit.   

Working and learning from home

After initially starting off as an experiment, working from home could become a permanent fixture for many white-collar workers. In addition to improving employee productivity and happiness, companies could also save on occupying large office spaces and the costs that go along with it.

Recently, some companies have made headlines by declaring that some, if not a majority, of their staff will be working from home permanently. As a result, ASX shares like JB Hi-Fi Limited (ASX: JBH) could be great beneficiaries as employees look to stock up on office equipment and technology.

In addition to working from home, online education platforms have also seen a surge in users. 3P Learning Ltd (ASX: 3PL) is an online education platform that offers a range of resources that cover core subjects such as mathematics, spelling, literacy and science. The company's platforms have seen a surge in demand and could become a permanent fixture to complement traditional learning.

Health and hygiene

The coronavirus pandemic has also resulted in a surge in demand for immunity products in Australia and abroad. Supplements such as vitamin C have been flying off shelves as consumers look to strengthen their immune systems. As a result, shares like Blackmores Limited (ASX: BKL) could be well poised to benefit from increased demand in vitamins and supplements.

The coronavirus pandemic could also renew the way people think about hygiene and infection control. Ansell Limited (ASX: ANN) is a global leader in developing, manufacturing and distributing health and safety protection solutions. The company could be well poised to benefit in the post-COVID world as the population becomes more aware of safety and hygiene protocols.

Convenience and online shopping

With dine-in restaurants closed and people forced to stay at home, there has been a surge in demand for home deliveries during the pandemic. This demand has extended to Marley Spoon AG (ASX: MMM) which is a subscription-based meal-kit provider. Services like Marley Spoon that deliver fresh ingredients directly could increase in popularity as consumers opt to home-cooked meals rather than going out.

In addition, the pandemic has also changed the way people shop, with e-commerce stocks like Kogan.com Ltd (ASX: KGN) and Adairs Ltd (ASX: ADH) reporting a surge in online sales. This could become a permanent fixture in a post-COVID world as consumers adapt to more convenient and competitive platforms.

Should you buy?

In my opinion, it would be a good exercise for investors to think of themes that could emerge and prosper post COVID-19. A prudent strategy would be to keep shares that show promise on a watchlist and wait for positive price action before making an investment decision.

The post ASX shares and investing trends that could boom post COVID-19 appeared first on The Motley Fool Australia.

Despite the chaos, investors should be on the lookout for new businesses, industries and trends that could emerge from the pandemic.

So with that in mind, here are 3 ASX shares that could be poised to blossom in a post-coronavirus world.

3P Learning Ltd (ASX: 3PL)

With a nationwide debate raging on about whether schools should remain open, online education platforms have replaced some traditional teaching methods. 3P Learning is an online education platform that offers a range of resources that cover core subjects such as mathematics, spelling, literacy and science. In response to increased demand during the pandemic, 3P Learning has expanded its staff by 10% and released 10,000 new activities.  

3P Learning's platform currently boasts more than 5 million students from over 17,000 schools around the world. Although online education may not fully replace traditional teaching, schools and institutions will be forced to adapt to the changing education sector. As a result, online platforms like 3P Learning could become more popular as auxiliary services to complement current teaching formats.

Ansell Limited (ASX: ANN)

The coronavirus pandemic could also renew the way people think about hygiene and infection control. Ansell is a global leader in developing, manufacturing and distributing health and safety protection solutions. The company operates in the industrial and healthcare sectors, providing gloves and other protective personal equipment, and could see extended demand in the future.

Ansell released an update last month informing shareholders that the company has experienced very strong demand for its AlphaTec hand and body protection products. The company also produces a range of other single-use and protective equipment which could see increased demand.

Marley Spoon AG (ASX: MMM)

With dine-in restaurants closed and people forced to stay at home, there has been a surge in demand for home deliveries. This demand has extended to Marley Spoon which is a subscription-based meal-kit provider that delivers fresh ingredients directly to consumers, allowing people to produce easy meals at home.

Last month, Marley Spoon released an update informing the ASX that the company had experienced an unprecedented surge in demand on the back of the coronavirus pandemic. In order to manage this significant boost in business, the company has increased its operations and expanded its global workforce. The growth has also been reflected in the Marley Spoon share price which has surged around 350% year-to-date.

Should you buy?

Although the coronavirus pandemic may have wreaked havoc on the financial markets, it will also provide investors with opportunities. In my opinion, the pandemic will have a lasting impact on consumer behaviour and business decision making, and these are possibly some of the ASX shares that could benefit.

I think a prudent strategy for investors would be to compile a watchlist of more shares that could thrive in the post-coronavirus world and wait for positive price action.

The post 3 ASX shares for the post-coronavirus world appeared first on The Motley Fool Australia.

In addition to managing staff and student welfare, the pandemic has forced institutions to change their admissions, income sources and delivery methods.

Here are some winners and losers of the changing education sector.

Online education a winner

The coronavirus pandemic has all but made school and university classrooms redundant, with education content being moved to online platforms to ensure social distancing. Given the uncertainty of how long the pandemic will continue, learning institutions will be forced to adapt their traditional programs to at-home learning.

3PL Learning Limited (ASX: 3PL) is an online education platform that could stand to be a real winner in the changing education sector. 3PL provides resources designed for schools and families, covering subjects such as mathematics, spelling, literacy and science. The company's platforms are currently used by more than 5 million students in over 17,000 schools around the world.

Although 3PL's online learning platforms may not replace traditional teaching formats, they could become more popular as an auxiliary service. According to the company's management, 3P Learning has expanded its staff by 10% in the past month, released 10,000 new activities and is running webinars daily. 

The 3P Learning share price has bounced more than 34% since mid-March. While it may not replace traditional teaching methods, the resources offered by 3P Learning could see extended demand in 2020 and beyond.

Tertiary education to struggle

Higher education is one of the largest sectors in the Australian economy and is heavily reliant on the revenue from international students. With many students unable to travel to Australia in the short term, universities and higher education providers could experience a significant hit. According to modelling from the Mitchell Institute, the university sector could see cumulative losses of up to $19 billion over the next 3 years due to lost revenue from international students.

IDP Education Limited (ASX: IEL) is a global leader in international education services, providing international students with language courses so that they can study in English-speaking countries. The company provides university preparation courses that are recognised in Australia, the US, UK, and Europe.

IDP recently completed a $225 million institutional placement to strengthen its balance sheet after acknowledging the impact the coronavirus pandemic has had on its operations. As a result, the company's share price has tanked more than 46% since mid-February.

Foolish takeaway

The outlook for the education sector poses an interesting conundrum for investors. Despite the severe headwinds some parts of the sector face, education remains an essential service and will provide investment opportunities.

I think a prudent strategy would be to keep education-related shares on a watchlist and wait for more clarity before making an investment decision.

The post Coronavirus lesson for ASX education shares appeared first on The Motley Fool Australia.

So, here are 2 education shares on the ASX and their outlook moving forward.

G8 Education Ltd (ASX: GEM)

G8 is Australia's largest early childhood education and care provider listed on the ASX. The company operates around 470 centres in Australia and looks after approximately 58,000 children per week.

The childcare sector has come under immense pressure in the COVID-19 pandemic. There have been numerous factors that have contributed to a reduction in occupancy rates, with more parents working from home or just pulling out their children from care centres to cut costs or as a precaution.

According to an industry body, the Australian Childcare Alliance (ACA), there has been anywhere between a 15% and 50% drop in occupancy. Despite lower occupancy rates, child care operators like G8 are forced to cover outgoing costs such as rent and wages. As a result, the industry is forced to seek government assistance in order to minimise the impact.  

Earlier this year, G8 provided an outlook on the company's performance in 2020. In its full-year report, G8 highlighted that bushfires and the COVID-19 pandemic have caused significant instability in the sector. The company noted that occupancy was slightly behind the prior year on a like-for-like basis. The challenges faced by G8 and the childcare sector is reflected in the company's share price which has plunged more than 67% since the start of the year.

IDP Education Ltd (ASX: IEL)

IDP is a global leader in international education services, providing international students with language courses so that they can study in English-speaking countries. The company provides university preparation courses that are recognised in Australia, the US, UK and Europe.

Earlier this year, IDP notified the market that coronavirus was not having a material impact on the financial performance of the company. However, as the virus has turned into a pandemic, tertiary providers like IDP are in the firing line.

Earlier today, IDP filed for its shares to be suspended from quotation as the company prepares to release an announcement regarding the impacts of COVID-19 on its business. Warning signs were seen last week when IDP announced that the company would be deferring payment of its interim dividend for 6 months.

Despite the structural growth story, the IDP share price has plummeted more than 53% since its February high.

Should you buy?

In the short-term, travel restrictions and social isolation measures will have a significant impact on the education sector. In the long-term, however, there might be buying opportunities for ASX shares like IDP that service the lucrative tertiary education market, as Australia will still be regarded for its higher education.   

Other potential growth stories could be companies like 3P Learning Ltd (ASX:3PL) which offer online learning resources to supplement traditional education.

I think a prudent strategy would be to keep these ASX growth shares on a watchlist and wait for share price consolidation before making an investment decision. 

The post How will the COVID-19 pandemic impact ASX education shares? appeared first on The Motley Fool Australia.

Supermarkets and office stores are two examples that have received a boost from panic-buying consumers and workers looking to set up home offices.

Here are 2 other ASX shares that have managed to blossom in the coronavirus crisis.

Marley Spoon AG (ASX: MMM)

Marley Spoon is a subscription-based meal-kit provider that delivers fresh ingredients to customers, allowing them to produce easy meals at home. The company currently operates in three primary regions: Australia, the United States and Europe.

Marley Spoon recently provided an update to the market, informing investors that the company has seen an unprecedented surge in demand for its delivered meal kits due to the coronavirus pandemic.

In order to keep up with demand, Marley Spoon intends to scale up its operations and expand its global workforce. The company also assured investors that its food supply chain has been resilient despite travel restrictions.

The Marley Spoon share price has surged more than 180% in the past 2 weeks as a result of the heightened demand. According to the company, revenue for the first quarter of 2020 is expected to grow more than 40%, with only the last 2 weeks of March showing the benefits of the recent surge in demand. Marley Spoon expects its second-quarter results to also be impacted by the increased demand.

3P Learning Ltd (ASX: 3PL)

3P Learning is an online education platform with resources designed for schools and families. The company's resources cover subjects such as mathematics, spelling, literacy and science. 3P Learning is currently used by more than 5 million students in over 17,000 schools around the world.

With the potential of nationwide school closures looming and many schoolchildren already staying at home, online learning platforms could become more popular as an auxiliary service to traditional teaching. According to the company's management, 3P Learning has expanded its staff by 10% in the past week, released 10,000 new activities and is running webinars daily. 

The 3P Learning share price has bounced more than 30% in the past 2 weeks as investors flock to companies offering online services. Although it may not replace traditional teaching methods, the resources offered by 3P Learning could see extended demand in 2020 and beyond.

Should you buy?

Although COVID-19 has wreaked havoc on most traditional businesses, it does provide investors with an idea of what life might be like following the pandemic. From this, investors can think of other auxiliary products and services that could prosper under the pandemic and beyond.

The post 2 small-cap ASX shares blossoming in the coronavirus crisis appeared first on The Motley Fool Australia.

Next month could prove to be a particularly volatile period for S&P/ASX 200 (Index:^AXJO) (ASX:XJO) stocks as companies prepare to hand in their earnings report card.

The recent dismal trading updates from the likes of Downer EDI Limited (ASX: DOW), Super Retail Group Ltd (ASX: SUL) and Flight Centre Travel Group Ltd (ASX: FLT) will put investors on edge for the February profit season.

The good, the bad and the ugly

Morgan Stanley highlights a handful of stocks that are likely to make significant moves over the next 45 days.

The broker issued technical recommendations predicting the short-term price movements of certain stocks. The drivers for these share price movements stems from the reporting season.

School's out

One ASX stock that's tipped to fall over the coming weeks is 3P Learning Ltd (ASX: 3PL). Morgan Stanley believes there is a more than 80% chance that the 3PL share price will fall over the next month and a half.

This is because of the limited upside from the educational resources company's first half result to be released in February.

3PL's earnings are heavily skewed to the second half of the financial year.

The stock fell 1.8% to $0.81 during lunch time trade. Morgan Stanley rates the stock "equal-weight" (equivalent to a "hold") with a price target of $1 a share.

Going in reverse

Another that's expected to struggle next month is the SG Fleet Group Ltd (ASX: SGF) share price. Morgan Stanley estimates there is more than 80% chance that shares in the fleet management and novated leasing group will fall in absolute terms over the next 45 days.

"This is because of an earnings release," said the broker. "We see softness at peers, softness in auto sales and deferral of revenue as headwinds."

The SG Fleet share price lost 0.4% to $2.30 at the time of writing. Morgan Stanley's recommending the stock as "equal-weight" with a price target of $2.60 a share.

Big smile

On the other hand, one stock that could put a smile on shareholders' faces is the Pacific Smiles Group Ltd (ASX: PSQ) share price.

Morgan Stanley believes there is a more than 80% chance that the stock will rise before the end of February.

The dental group is expected to post strong first half results next month, which Morgan Stanley thinks will send the share price jumping higher.

The broker is recommending Pacific Smiles as "overweight" (equivalent to a "buy") with a price target of $1.90.

The stock is trading 1.1% higher at $1.78 at the time of writing.

The post Broker picks the ASX stocks in the reporting season hot-seat appeared first on The Motley Fool Australia.

One mid-cap business performing very well since it listed in November 2015 is Idp Education Ltd (ASX: IEL). It's a for profit education business similar to the likes of Navitas Limited (ASX: NVT) or 3p Learning Ltd (ASX: 3PL), but actually has a far superior track record.

In fact since it listed at $2.65 per share in November 2015 it has climbed to $9.15 per share today to climb more than 210% in just 3 years. It now has a market value around $2.33 billion so let's look at some reasons behind its success.

Tailwinds – IDP's core business is the provision of English language proficiency (IELTS) testing services that students mainly take in order to enter higher education courses in English speaking countries, to gain visas, or to impress prospective employers. English's accelerating dominance as the global language of business is seeing demand for the tests soar, with growth up 25% over FY 2018. IDP receives each time a student takes the test, with many students failing multiple times before passing to create even more fees for IDP.

The company also has a student placement business that helps send overseas students into higher education in English-speaking countries. This business grew revenues 19% to $122.7 million in FY 2018.

IDP is also leveraged to the growth in emerging market economies with a lot of its fee-paying students coming from high growth markets like India, China, Brazil and Mexico.

Growth – the rising demand helped the company increase its net profit before amortisation 25% in FY 2018, with the final dividend also up 18% to 6.5 cents per share. IDP is also investing in technology such as more computer-based testing for its IELTS tests in order to save on cost and administration processes.

Foolish takeaway

One obvious downside to the stock is its high valuation on 41.4x trailing earnings per share of 22.1 cents. As at June 30, 2018 the group also had total debt of $63.9 million, but net debt of just $15 million after accounting for cash on hand.

Therefore while the business has a good track record and the tailwind of strong long-term demand the high valuation is likely to put off a lot of value investors.

The post 3 reasons to consider buying Idp Education Ltd shares this week appeared first on The Motley Fool Australia.