To anyone who wants to talk other stocks. If your upset I'm talking about SCHL on the LF message baord, don't comment.
I came across this company by accident but noticed it got slammed yesterday and am now contemplating getting in. The reason I'm asking in this board is because they are in somewhat of a similar space as LF, although they do not compete directly with any LF products. Both companies are aimed at helping kids learn. Althouhg scholastic mainly sells books and consulting services, and LF sells technologically based products. I listened to the conference call and it seems as though the company is looking to become more technological. They recognize that ebooks are becoming more popular than print books, and that technology (like the Leappad from Leap Frog) is impacting education for kids now. Mights scholastic try to make a move into LF's territory? Might they move into the content space? Perhaps they will partner with LF in the future!
The company has a pretty healthy balance sheet and a nice amount of FCF. I calculated the tangible book value to around $19 but with goodwill its around 25. SCHL is currently trading at around $26 after getting hit hard yesterday and losing 15% almost $5. The company pays a dividend though, and that tends to lower volatility a bit. So my theory is that it may drop another dollar or two but then drift back up.
Any insite on SCHL is VERY welcome, negative, positive, whatever! The SCHL message board is absolutely dead which leads me to believe that this stock flies under the radar with retail investors.
I'm looking at three apps in my hand here from LF and they are Scholastic games. Magic Bus, I Spy, and My Amusement Park. This means that LF already has a partnership with Scholastic for apps.
Hope this helps. GL
I just skimmed through the financials and conf call. I don't see them being a competitor to LF. They don't seem to be getting into the hardware space. Looks like they made an app to distribute their content on the iPad, so maybe they could be a partner with LF if anything putting their content on the Leappad. I'm not sure if they market to the same age group or not.
Offhand it doesn't seem to interest me. It's not exactly trading at a low PE. They lowered guidance for 2013 to 1.10 - 1.30 EPS and 45-55M FCF (down from 100-120M!).