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K12, Inc. Message Board

  • myclangelo_2020d myclangelo_2020d Feb 14, 2011 2:10 PM Flag

    K12 hit a $BILLION Market Cap !

    Huge milestone!
    Congrats!

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    • A 1 billion market cap is going to seem puny in comparison to what LRN will be in a few years. My reasons:

      1. LRN dominates the K-12 space like no other company. Unlike the college level education providers they do not depend on government loans to their clientele to prop up their business model.

      2. The political environment for charter schools is turning in their favor. The Republican takeover of state houses, the declining fortunes of the teachers unions and the huge budget deficits of many state governments are pushing more effective solutions to education. The era of "just spend more" is coming to an end. From now on spending is going to be more targeted. Charter caps are being lifted and new states should be coming on line.

      3. Their other venture, English instruction in China, private schools, etc. are all doing well and show enormous potential.

      4. The have the size to drive economies of scale that no one else can match. EBIDTA growth is faster than revenue growth right now and should accelerate.

      5. Packard is a very, very smart guy and the right guy to grow this business.

      6. The stigma of learning at home or home schooling is decreasing as many parents find it liberating and much more normal. Kids do a lot on line now, why not learn

      7. Many public schools have been dumbed down so much that parents are looking for alternatives. LRN provides the best low cost alternative to private schools.

      CD

 
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