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During the IPO season Francis Gaskins, editor of IPOdesktop.com & director of research for Equities.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... More
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  • Education Mgt (EDMC) has issues  0 comments
    Oct 1, 2009 10:40 PM | about stocks: APOL, STRA, ESI, COCO, CECO, CPLA, LOPE, BBBB
    It's too big to be 'double the size' in several years (?) as reported in some of the IPO media.  Here are some of the financial issues (problems)

    . Current revenues are above $2bb, way too large a base for explosive growth
    . Price-to-tangible book value of -2.6, meaning it's still highly leveraged on the balance sheet
    . Gross profit is 53% (not high like the 'real' companies in the online business)
    . 48% of pre-tax profit is chained to interest payments, meaning it's highly leveraged on the income statement.
    . 24x price earnings multiple based on year ended June 30, the projections better be pretty good and they better not miss them
    . The student loan market & regulation environment is in uncertain flux right now

    read more in this IPO report
    gaskinsco.com/linkto-edmc.shtml
    Themes: IPO analysis Stocks: APOL, STRA, ESI, COCO, CECO, CPLA, LOPE, BBBB
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