It may not seem like it to shareholders here but the NYT might just have done us an enormous favor. The crummy hit piece on K12 will have no long term impact on their business but it certainly hammered the stock. So why is this a good thing? Well, it provided us investors the opportunity to buy K12 shares at a very, very low price of course. There is nothing to indicate that K12's growth is in any fashion slowing down or that they will not continue to become more profitable going forward. The impact of the article will be nil.
In fact online learning is now hitting a tipping point at which it goes mainstream. The more students are exposed to it the more that it becomes known and accepted as an alternative form of education. Those states that do not have online education will become the outliers and those that do will be mainstream. Caps are being relaxed, driven by the need to provide more education for the buck. Users of the service are starting to lobby for it as even the article indicates.
One year from now K12 will again be selling for north of 30 and perhaps 40. The NYT article will become just a distant fading memory. And nimble shareholders here who took this opportunity will be significantly wealthier. All due to perverse rantings of a lousy NYT reporter. Perhaps I will send her a thank you note. LOL