October 27, 2021

Low cost/tuition online schools…they have been growing, what are your thoughts of long term prospects?

There have been a number of entrants into the online degree space whose tuition are at significantly lower price points than the majors.  Some of these have seen tremendous enrollment growth over the last year to two. In addition, they have remained (in many cases) extremely profitable.  What are your thoughts on these low price providers?  How do you think they will fare long term?  Will they be able to continue to grow with the high marketing/lead costs? 

EDU stocks trading at low prices & multiples

Take a look at the EDU stocks, now looks to be a good time to buy in at good prices and at multiples as low as they have been in a while.  With all the bullish discussion of late the EDU sector has taken a hit.  With people/investors being short sighted and thinking, hey if this is the beginning of a recover, we need to get out of those counter cyclical edu stocks now as they will surely go down…  Our thoughts are with what Samuel Clemens once wrote: Let us be thankful for the fools, but for them the rest of us would not succeed!  Sure the sheer volume of the selling and shorting may bring these stocks a little lower, but watch them continue to grow, continue to be profitable, and continue to be strong companies…. and ultimately their stock prices will continue to go higher.

Will online masters growth hold up?

After speaking with many analysts over the last few months there are two big fears that keep being repeated. The first being bad debt and the other top fear is the continued growth of online Master programs.  The main reasons mentioned are potential future cuts by corporations of tuition reimbursement & continued decline in economy, thus affordability of education. 

While I have heard of reports indicating that the risk of loosing corporate tuition reimbursement is minimal, are those accurate?  Who were polled?  HR people, they are usually the last to know.

Will the economy get so bad that people fear they will not be able to afford the monthly out of pocket costs of their tuition along with their rent, car, insurance and food?  

The search volume as well as lead volume continue to show strong demand.

What do you think?  Are you seeing anything either in support of this or to the contrary?