Learning the Hard Way - Academies Australasia (ASX:AKG)

Academies Australasia (ASX:AKG) is a small education operator with campuses in Australia and Singapore. The company has high operating leverage due to its fixed cost base, but has been hit by changes in Australian international student policy. While the company has shown some green shoots with strong growth in higher education and its Singapore operations, it also has significant debt and lease liabilities, making it a risky investment. The author concludes that it is 'Potentially interesting' but will 'watch and wait for now'.