September 24, 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.

Bridgepoint Education Inc goes public below asking

Priced at $10.50 with a target $11-$14

 

Bridgepoint Education, which has two small traditional college campuses and 98% of its students attending exclusively online, generated more than twice the revenue and eight times the earnings in 2008 versus 2007, ending the year with $26.4 million in profits. It has more students, faster enrollment growth and a higher operating profit margin, at 15%, than the last online college that went public, Grand Canyon Education Inc.

Stock is up to $11.33 was as high as $11.68