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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mark Marcellus who wrote (42626)	5/13/2011 1:19:32 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78628

Marc - re STRA - why do you think a stock like STRA trading at ~14X forward earnings in an industry that is under the gun and depending on public funding is attractive. I understand that STRA management is probably the best in the industry but I don't even see remotely a valuation angle at current valuations. Another 50% haircut may do it for me, but before this happens I am in no hurry to learn much about this business. Just my opinion of course.

To: Mark Marcellus who wrote (42626)	5/13/2011 8:21:30 PM
From: Calvin_2011	Read Replies (1) \| Respond to of 78628

Mark Re: For profit education I just read Strayer's 2010 annual report. I am very impressed. The management seems candid,consistent and shareholder friendly. For example, the report lay out clearly the operating cash flow, the capital expenditure (both the portion spent on replacing cost and the portion spent on growth) and how the company returned the remaining free cash to shareholder through dividends and share repurchase. I rarely see any company that spell out how it manages retained earnings in such a clean cut way. And just like you said, the report also does a great job in explaining the new Education Department rules in a chronological order and presents a good case or review of its basic business model assumptions and its long term strategy. This is very helpful. Thanks, Calvin