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Educational Development Corporation (EDUC)

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
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3.5450-0.0050 (-0.14%)
At close: 02:05PM EDT
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  • G
    Gary
    EDUC’s stock price has collapsed more than 70% since Craig White took over as CEO last year. Great decision!!!
    Bearish
  • G
    Gary
    Serious question for Todd (and others): Is EDC going to declare bankruptcy in your opinion?
  • G
    Gary
    There is a new short attack article this week on this company posted on Seeking Alpha. Pretty grim outlook for Randall and son.
    Bearish
  • T
    Todd
    This quarter is a disaster. This is normally the strongest quarter of the year for these guys. I am downgrading my model based on these results - Mu previous note I said, I would consider buying these guys in the $2.50-$3 range. With my model downgrade, I would not buy these guys at any price - they need to fix the business with significant changes - or this will just keep bleeding until it gradually dies...
  • T
    Todd
    More bad news today - Usborne publishing has basically kicked EDCU to the curb. This is after a near 50 year relationship. These guys need new leadership and they need it NOW...
  • A
    Anonymous
    Todd, reading your post and trying to understand your theory. Are you implying that the Company should have reduced the sales commission, which has been in place for over 20 years, to bring more profit to the Company. The Company just posted the most profitable year in history, primarily due to the field sales force, so I might question the wisdom of reducing the earned commission of the field sales force. The fiscal year end results indicate the Salesforce drove the Company to record profits. Might I ask, Todd are you short on EDUC?
  • T
    Todd
    After looking at tonight's announcement I am somewhat less bearish on this stock. They have likely implemented some of the changes, I suggested a year ago. They are doing a better job driving profit, and that should show when they prepare their 10Q for Q1. While I still do not believe they are where they should be, it appears they have at least moved somewhat in the right direction. None of this changes the fact they face headwinds as COVID unwinds - but now I think the stock may bottom in the $9-$10 area rather then going all the way back to $7 or $8 - but we will just have to see how this unfolds. I would not buy here since I see the upside as limited - but at least it should not be a bloodbath - maybe just kind of a flat line or a slow bleed down toward $10... On the upside, if it goes that way, I doubt it can go above $15.50 (if it did reach $15 - I would sell without a doubt and wait for a pullback)... Best of luck if you are in this - I remain out and watching...
  • M
    Margaux
    I've read yesterday's financial statements and it seems the inventories are piling up and are being financed with debt. I don't get why they keep buying more books than they sell. Do they have some kind of purchase obligation? It makes their cashflows look terrible
  • J
    Jason
    Great company, the stock should be a safe bet at a minimum. I expect a surge as I don't think school is going to happen in the fall.
    Bullish
  • E
    Eric
    I think this is a unique opportunity to buy this stock at these prices. If the comment holds true that they said last quarter that full year revenue and profits will be greater this year than last, it’s hard not to see this trend up after earnings . I would also expect them to increase the dividend given they did it this quarter last year. At some point I can’t help but think they will become a target for a competitor or a private equity firm.
  • M
    Michael
    I cannot figure this one out. Is this a coiled spring? It looks to me like 2021 sales and revenue numbers blew away 2020, so why is this stuck? If I plugged in the correct assumptions, the intrinsic value calc says fair value is just shy of $19. Crazy! Maybe I need a sharper pencil? My DCF model is less optimistic, though I used the highest WACC and pretty conservative growth and cash flow numbers. I'm not really a chart guy, but I like to look at the Bollinger bands. Not much help there as the channel is tightening with no obvious trend... but maybe oversold? If anyone has done a deep dive into this, please tell us what you think! If I'm reading the 2021 report correctly, this is unloved for no good reason.
  • N
    Nanci
    Wow, Knocked it out in 3rd quarter. See after hour increase.

    If history holds true the stock may bounce around between 15.5 and 17.5 before settling in the 18 range.
    Bullish
  • P
    Paul
    Hoping that someone on this board can save me from making a terrible mistake: I'm tempted to buy shares of EDUC, but I can't figure out what's wrong with it.

    Yes, I understand that their business was pumped up by the pandemic, and that will go away. But AFAICT they'll still have much better revenue & earnings than is reflected in the share price.

    And yes, I understand that they overbought their inventory, and have a backlog. But it seems reasonable to believe the CEO's take, that the inventory will all sell eventually, and buying ahead of the surge in shipping costs will actually save them money in the long run.

    So what am I missing? Why is this stock seemingly so undervalued?
  • E
    Eric
    Completely disappointed at how the previous ceo said revenue and profits up in 2022 and then they come in way short. Also thought it was troublesome the earnings call revealed they saw a slow down begin in April and made their forecast in July.
  • E
    Eric
    I would love to see a dividend increase to show continued confidence in their earnings power. Insiders bought in the 14 range back in May, if that isn’t a sign they feel the future is bright I don’t know what else is.
  • g
    genius 007
    EDUC will be in good shape. Please read the transcript from the conference call of yesterday. The stock has already recovered about half of its loss. Revenue has leveled out somewhat which probably spooked the momentum investors. However the reinstatement of the dividend and profit should offset the slowdown in growth.
  • E
    Eric
    Any predictions for August sales figures? Hard not to expect a pre announcement again.
  • A
    Anonymous
    Earnings about as expected with the prior revenues guidance. Annualized earnings now about $1.30 and rising. Good to see sales agents on the rise again. With growth resumed and some room to improve margins, this should be a $20 stock.
  • g
    genius 007
    Great stock split today! Congratulations to all "longs" as the price is up!"
  • I
    Izzy
    Red Oaks would have been smarter to cut its losses and get out. But I am glad it’s forcing the company to do the right thing. The SEC should have investigated $EDUC years ago. https://www.cnbc.com/2018/07/06/pr-newswire-red-oak-partners-sends-letter-to-board-of-educational-development-corporation.html
    BOCA RATON, Fla., July 6, 2018/ PRNewswire/-- Red Oak Partners, LLC, a long-term investor in Educational Development Corporation and the largest outside investor with a 7.7% ownership stake, announced today that it has issued a letter to the Board of
    BOCA RATON, Fla., July 6, 2018/ PRNewswire/-- Red Oak Partners, LLC, a long-term investor in Educational Development Corporation and the largest outside investor with a 7.7% ownership stake, announced today that it has issued a letter to the Board of
    www.cnbc.com
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