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During the IPO season Francis Gaskins, editor of IPOdesktop.com, regularly appears on CNBC TV, Bloomberg, thestreet.com & other financial cable channels. On the day of the Visa IPO he appeared on four cable TV financial shows including Bloomberg & CNBC. Over the past five years he has... More
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  • ‘In demand’ Rosetta Stone IPO to be priced tonight

    Highly anticipated ‘in demand’ Rosetta Stone IPO to be priced tonight

    Tags: RST, APEI, APOL, BBBB, CECO, COCO, CPLA, DV, EDU, ESI, LINC, LOPE, REVU, STRA, SYMC, IPO Analysis, Rosetta Stone
    Apr 15 6:32 AM | Link | Comment!
  • 30% IPO Pricing Haircut -- Bridgepoint IPO prices under range at $10.50, Rosetta Stone IPO is better

    30% IPO pricing haircut.  Bridgepoint prices under range at $10.50.  The post secondary online education sector was strong last year up until the first of February, when the largest company, industry sector leader  Apollo (APOL) aka Univ of Phoenix almost reached $90 and recenlty almost touched $60.

    IPOs can't fight industry trend headwinds.  Can't swim upstream when the current is washing that sector downstream.  Also, almost 100% of the proceeds went back to stockholders, now that's the definition of an IPO  bailout 'secondary'.

    Disclosure: No position

     

     

    Tags: RST, BPI, APEI, APOL, BBBB, CECO, COCO, CPLA, DV, EDU, ESI, LINC, LOPE, REVU, STRA, SYMC, IPO Analysis, Rosetta Stone, Bridgepoint Education
    Apr 14 6:45 PM | Link | Comment!
  • Rosetta Stone's IPO (RST) is better than Bridgepoint Education's IPO (BPI)

    (RST) & (BPI) both scheduled for April 13wk

    SIMILARITIES
    (1) Both are educational stocks
    . Rosetta Stone provides language learning software
    . Bridgepoint Ed provides post-secondary online education

    (2) Both report revenues for 2008 in the $200mm range & both were profitable in 2008

    (3) Both have good internal growth track records

    (4) The trailing 12 mos P/E ratios are in the same range at price range mid-points:  23.4x for Rosetta; 29.7x for Bridgepoint

    DIFFERENCES
    (1) Rosetta is a market segment leader with a differentiated product

    (2) 95% of Rosetta's sales are in the US, and growth plans are set for international expansion

    (3) Rosetta's gross margin is higher, 87% versus 71% for Bridgepoint

    (4) Price-to-book value is more favorable for Rosetta: 2.7 versus 20.8 for Bridgepoint

    (5) Online comparables to Bridgepoint suggest it is fairly priced (trailing 12 months) relative to Capella Education (CPLA) at 28x and Strayer Education (STRA) at 29x.  The range is wide, however, with Apollo (APOL) at 15x ($10bb market cap) and Grand Canyon (LOPE) at 93x ($677mm market cap).

    Notice that post-secondary online ed stocks sold off 15-17% since March 31, so there are some headwinds in the sector.

    Read more
    Rosetta Stone IPO:  http://bit.ly/18evtp
    Bridgepoint Ed IPO:  http://bit.ly/4DhEsY
    Disclosure: No positions

     

    Tags: RST, BPI, APEI, APOL, BBBB, CECO, COCO, CPLA, DV, EDU, ESI, LINC, LOPE, REVU, STRA, SYMC, IPO Analysis, Rosetta Stone, Bridgepoint Education
    Apr 14 12:30 PM | Link | Comment!
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