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Education Mgt (EDMC) has issues

|Includes: Apollo Education Group, Inc. (APOL), BBBB, CECO, COCO, CPLA, ESI, LOPE, STRA

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