Scholastic (SCHL): Here's a decent company at a decent buy-in price, imo.
Apparently a strong franchise:
fool.com
Compared to past several years, the stock is selling at a low psr and low p/bk. Stated (but not tangible) book value has increased every year since at least '95. The stock trades near an annual low and at the lower end of its historical p/e. Profit margin per Yahoo is 2.6%. Margins have fluctuated in past: 2.6% is below the 3.4% average of the past eight years (excluding a loss year in '97). So I'm guessing they might be able to have a good year again in future if they can hit their average. (Of course, -g-, they could have a bad year or years again too.)
I'll bet on a revision to mean. According to S&P, the stock's high annual prices from '95 through '04 have been $26.25 ('95), $28.50 ('99), $32.06 ('00), $33.37 ('98), and $39.12 or higher every other year.
If people will want stocks in future, and if SCHL does have a franchise, then I'll bet at some point I ought to see 10 or more points higher on SCHL than today's current $27.45 price.
A little nervous from the market's recent fall, I will commence with a very small purchase today and lag into a position if I can.
cbs.marketwatch.com |
