The education stocks have gotten shelled. Multiples have compressed dramatically, but growth rates are largely intact. In the case of CECO the SEC investigation threat is way over done, and fueled by fear of the unknown. The radar screens of cash rich aquisitive companies are lighting up. For the first time in a long time there is value in acquiring one of these franchise operations. Who should be interested? How about Apple with tons of cash and a committment to the education space; or how about News Corp, or Disney; or more probably an inter-industry consolidation...Apollo (APOL), and ITT Educational Services (ESI) are both reasonably cash rich...COCO and CECO might make good targets. I don't have any answers yet, but am going to do some work. Thirty years of Wall Street experience might help me in my search for opportunity. If you think this is all bullshit (like a lot of what is on this board) then put me on ignore. If you agree...how about recommending this post and we will start looking for a trading idea. Thanks. Turbo
Read Lehman Bros. 10 pg analysis of 2nd qtr results issued Aug. 2nd and you will see that 30% growth looks doable. Wall Street's trouble is that it wants to TRADE and NOT INVEST in an excellent for-profit education company. A once-in-a lifetime buy for REAL LONG TERM INVESTORS.