Paul,
Thanks for the comments
Devry also perenially shows up on these screens also at favorable valuations. I guess I've picked Apollo as my favorite out of the bunch of these types of stocks and I keep my eye on it, but Devry is similar with lower sales growth and lower ROE, but also is priced at lower multiple. Using similar calcs on Devry as on Apollo I'd expect 15%+ ROI there also. Maybe less to go wrong with Devry, but Apollo is on track to get bigger faster if things stay on track and I see this as a somewhat monopolistic business model with declining marginal costs - so the bigger the better, especially with remote campuses and easy scalability.
I admit I do have tend to favor the high growth stories, but I will reevaluate Devry because it does look good too. Maybe hedge my bets in the space.
The future will be all about human capital, and in the future spending on education will continue to grow as a percentage of GDP. Macro trends should be in favor.
I'm always hesitant to get into retailers like BBY, but I think I'm going to place at least a small bet because so many retailers are showing up in the valuation spreadsheet spreadsheet right now. Home Depot, Kohls, Best Buy, Bed Bath Beyond, and the Limited are all at least worth looks right now, and for years I generally couldn't find that many retailers standing out so I'm thinking they may undervalued in general right now.
Shane |
