Educational Development Corporation (EDUC)

[Uglytuco]

Termendous growth in EDUC. On the investor call they projected $200M revenue for the coming year, and they always overachieve. They said they recently had their annual sales meeting, and the sales team thinks they will do $300M. I think this stock has been down for the last 6 months for 3 reasons:

1. Growing pains - They've had some difficulty keeping up with the growth - moving to a new facility, updating systems, etc. I've heard a question about the debt from their mortgage. They've made it very clear that their lease tenant's payment covers the entire mortgage payment for them. How much better could it be?
2. Profit margin - I think there's been concern that the earnings have not been increasing at the same rate as the revenue. This, however, is due to all the growth in the past year and things they've had to upgrade. They will benefit from this point on from all the efficiencies they've gained from these investments.
3. The stock is not well known. It's typically had low trading. Those familiar with the company have their money in it. We need new people to recognize what a steal it is and get the trade volume up.