SCL: Harley Grosser's Top Small-Cap Pick, page-11

I'm not a holder of SCL, but working in the industry I have followed it with some interest from afar.

The elephant in the room that seems to rarely get mentioned is the robust competition from the company that sits on top of the perch. That being Search Associates.

SCL has a long way to go with the database of their recruitment platform if they wish to be a true competitor.

Yet the true challenge is the stickiness of its customers. Teachers are required to jump through a lot more hoops to gain registration with Search Associates. Once they've been in the international school system for many years, they also have a collection of confidential referees which are all stored on the Search Associates database. To switch services would mean having to track down referees from all the previous schools they've worked at over the years and ask for another reference. Now, why would they do that if the Search Associates platform is already superior (which is unanimous) and more jobs are available through them than with Schrole?

Just a couple of thoughts.