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Strategies & Market Trends : Stocks that do well in recessionary environments -- Ignore unavailable to you. Want to Upgrade?

To: stockvalinvestor who wrote (1)	10/29/2008 7:28:54 AM
From: bruwin	Read Replies (1) \| Respond to of 6

Yes, that was a good 8% bounce on the day. Looking at APOL's financials there are certainly some good ratios, while at the same time there are one or two aspects that are not in line. We see a very good 29% of Quarterly Revenue left over at the EBITDA level, and an exceptional TTM pretax return on capital of 66%. The company also has no long term debt which is a major advantage in the current climate. However, its Bottom Line numbers do not seem to follow its top line Revenue increase. 4 Quarters ago (at Q3) we had :- Revenue = $733m. Net Income = $131m. Net Profit = 17.9%. 2 Quarters ago (at Q1) we had :- Revenue = $781m. Net Income = $140m. Net Profit = 17.9%. Latest Quarter (Q3) we have :- Revenue = $835m. Net Income = $139m. Net Profit = 16.7%. So we see regular Revenue increases from $733m to $781m of 6.6%, and from $781m to $835m of 6.9%. But APOL's recent Bottom line is somewhere between static to falling. I suspect this may be a contributory factor to APOL's price declining about 26% from $80 to $59 over the last 12 months.