EDUC
I like EDUC for the following reasons and was buyer because of it.
1) It is a great growth story, not too many companies guide for 100% y/y revenue growth and don't have to make and acquisition to get there.
2) Earnings of a $1.00-$1.10 Give the stock a multiple of say about 10, given their growth they should trade at a pe of at least 12 and possibly as high as 15. Hence I feel the stock FV is around $15.
3) EDUC pays you a divy, very few microcaps pay you a decent divy the fact is they are paying you a 3.3% divy right now which is pretty solid income element to the company as well.
However there are some negatives (1)You may not like the type of company it is. (b) As good as the numbers look it was a slight guide down 120-140 million in revs and $1.00-1.10 are versus the $1.00-1.50 and 140-170 million guide earlier. Now I think those number will be at the upper end of the range now, just like I felt they would be at the lower end of previous range so really not much has changed in my expectations. I expect them to produce rather good results and continue to grow, I think the stock is 30-40% undervalued, and it pays a dividend while we wait. All is just my opinion, and I could always be wrong though.
