I was just looking over the ESI long term stock price chart, going back to 2003. ESI shares in 2003/2004 traded at $35 (although the shares were single digits in the early 2000's). What did ESI earn in 2003 and 2004 was my immediate thought? I figured that given that ESI earnings are targeted for a range of $8 - $9 this year and the stock is at $32 (the 2003/2004 level), the 2003/2004 earnings must be in the ball park of $5 - $7 per share, or thereabouts.
Needless to day that I was completely shocked to see that 2003 and 2004 earnings per share were $1.27 and $1.94 respectively.
So here we are 8 years later and ESI earnings have increased 5.7 times and the shares are at the same price. And during that time we went through an economic collapse worldwide due to the housing bubble and many leading companies have seen their earnings completely wiped out (eg banks, investment banks, GE, and so on and so forth).
No question, ESI has the monkey on its back right now, but the monkey does not stay there forever.
Exit strategy? I always love it when people use that terminology. What it means is "when are you going to sell" and is most frequently language used by day traders whose exit strategy is basically a stop loss after they lose $0.25 in a stock because they have no conviction in anything and no balls to hold through a loss period in a stock that they really think should be alot higher.
I have no clue at what price I will end up selling ESI. Go ask Warren Buffet what his exit strategy is on his Washington Post position. The Post owns Kaplan Schools.