I didn't say it's the best investment in the world...if you can find that I did, please show me where.
However, this stock has a place in most any investors portfolio - it has decent earnings, it pays a good/stable dividend that was recently increased, there is plenty of cash on the balance sheet, no debt, the CEO regularly buys shares and the business model/product is as good or better than the competition. You continue to throw stones but not once have you provided any comparison to what the competition is doing/providing. You downplay the CEOshare purchases, but I challenge you to find one CEO of any of the competitors who buys shares. You won't because they all sell their free shares hand over fist with the rest of their officers and directors. You make a big deal out of how much the stock has fallen, but it's still no worse than the competition over a similar period. If you bought at the top, that's not my problem. Any price under $4 it's a decent bargain.
If you want the best investment in the world at this time, I could give it to you.
I use a formula that gets me to avoid #$%$ stocks. The issue is missing out in the turnarounds if you don't dig deeper. I use a net income divided by enterprise value yield. What this tells me is what this business is giving me as if I owned the whole damn thing. I value it like a bond, like an investment apartment property, etc.
My margin of safety is about 12 to 15 percent. If you run the numbers for this company it comes out to about 6.7 percent. For this stock, to even meet that target it needs to drop like 50 percent. The argument here is that the industry is a turnaround not the company and so there will be a massive shift in the industry.
I will buy this stock at 1.50 to 2 dollars that gives me a yield of about north of 10 percent and something I would be willing to hold if the company doesn't start running losses. I bet you the family won't sell any shares to the company at that price but would at 7.5 which is why I say this company does shady things.
Why waste your time on this stock and this industry when there are many shady things going on. Do you really believe this industry is going to improve dramatically over the next year or so? There are more companies that have the same investment profile ( no debt, growing and wih a high dividend yield) why this stock?
Lets be real here kids that go to regular colleges and universities that are nationally recognized are paying the same if not a bit more than these not for profit schools and they can't get jobs either. So how could these kids really benefit? Now I question the morality and ethics of the model.
So what if the company has a decent dividend. Given the margin of safety, poor quality product and soso management team I would only buy this stock at 2 dollars, that would give you a 6 to 7 percent dividend yield for the risk but even then I don't think the business is great. Sooner or later consolidation will occur and this is company is definitely the take out target vs. the acquirer.
As for the CEO purchases the guy did it at 5,4,3 and for sure will do so at a lower price. If I see the management team buy a 10 percent or more block of the company from the family at 2 dollars than I think harder about the investment.
Nevertheless, what is your best investment in the world. Sme of the stock I bought are up a lot of got taken out and looking at some other stuff.
Bought GameStop at 19 years ago, my dividend yield on that is 5 percent . I bought clear wire and sold it at double now investing little by little in skullcandy, not convinced yet though.