joes

11 Low PE Stocks with High Earnings Growth Rates

K12 is an interesting company, a consulting project with a local education technology company introduce me to the company.

I haven't added K12 yet, but now that a position in Bridgepoint Education has been liquidated through a pretty sweet IPO it makes sense to re-enter that sub-sector.

There are some regulatory pressures in the educational field that create uncertainty that rivals the banks problems. SInce legislators are often the senior managers of the educational systems decisions to limit enrollments to a certain percentage and cap per student tuition rates K12 needs a new business model for every state.

If this ever gets cleared it looks like companies like K12 will change the mode of education to a more continual process with multiple devices and locations for delivery. Amazon is positioned to do well with it's Kindle platform providing a distribution and payment method to text book publishers.

Following the money in these supply chain transformations can be profitable but difficult to time, so you need to be able to sit on the stock for a while and there is no reason to hurry your decision.