Educational Development Corporation (EDUC)

[glenn1919]

EDUC...................................................https://stockcharts.com/h-sc/ui?s=EDUC&p=W&b=5&g=0&id=p86431144783

[glenn1919]

EDUC....................................https://stockcharts.com/h-sc/ui?s=EDUC&p=W&b=5&g=0&id=p86431144783

[wadirum1]

Just figured I'd check in here. I used to own this. Didn't make nearly as much as I could have if I'd held longer, but can't complain.

What is going on with this plunge?

[Nikodemos]

At what price would one recommend closing out a short position?

Curious as to a target price & what (charts, technical, or fundamentals) that might be based on.

TIA...

[Nikodemos]

Did you notice how their revenues break records in Q1?

If the stock is going to cooperate it looks like the BEST TIME to buy is just before they report EACH YEAR prior to the release of Q1 numbers.

The TREND is my friend!

Hoping we see some more short-term downside before the FALL buying season into the New Year settles in. I'm a patient guy... I can wait! Thanks for posting.

[Nikodemos]

Still lurking & WAITING for a bottom signal & the foundation put in for a REVERSAL!

It would be NATURAL for this guy to get stable around September going into their BEST Q y-o-y as they've consistently put forward GREAT numbers (comparatively speaking) going into & coming out of that FOURTH QUARTER.

Let's see if she stabilizes by September or so! On close watch. GLA

[Nikodemos]

CHART ALERT - Looks like it might be time to PAY closer ATTENTION & get ready for an ENTRY! We're almost there by the looks of things! Guess time will tell,... ALWAYS DOES!

[JohnLocke101]

Educational Development Corporation Announces Record Monthly Net Revenues and Active Sales Consultants in the Company’s UBA...

[JohnLocke101]

...

[Grandmasim]

This one is way overbought. Starting a short position....

[wadirum1]

EDUC moving higher again.

I still don't understand why people were selling so many shares down at $5. But that selling has dried up, the book seller counts are rising, and this is heading up to $10 or better.

[wadirum1]

Nice move today. Nobody else on IHUB bought cheapies while they were available? Mighty quiet here.

[wadirum1]

We all knew they had taken a hit on "consultants" and that revenues and earnings would take a bit of a hit.

The market already priced that in.

What hasn't been priced in is the recent increase in consultants, and the late-quarter uptick in sales.

Is this finally going to turn back up?

[wadirum1]

Any current thoughts on EDUC?

I think it has bottomed and is heading back up...

[wadirum1]

EDUC now all the way down at $5.70. The P/E is something like 7. Yield is well over 3%. Looking very attractive.

[wadirum1]

EDUC's 10-K shows that it has been buying back shares in this range, and they have authorized the purchase of up to 10% of the float. I doubt the PPS will drop much further.

[wadirum1]

EDUC earnings look very healthy. Check it out.

[wadirum1]

The trading here is so silly. All of a sudden we're back in the 9s?

Never should have dropped. Such low volume.

[wadirum1]

Bought again today.

[wadirum1]

Took a starter today -- small position at 8.40. Hoping to get a bunch more down closer to 8.00.

This stock has been very good to me in the past...

[KunalGupta___]

The College Monk

[Uglytuco]

Love my stock picks Nick. The market is going to enjoy those results.

[Nikodemos]

And what a LOVELY CORRECTION we've had here!!

From sub-$4's to nearly $28.00

It's been a GREAT RUN!! I LOVE my stock picks, calls & puts!


$EDUC

[stocktrademan]

EDUC buy 19.15

bull flag



















normal chart




log chart

[Nikodemos]

STILL working HIGHER!! Love my picks...getting READY to HARVEST here soon for GREENER pastures though I feel there's MORE UPSIDE to be had!!

Loving my picks & positions...GREEN EVERYWHERE!!

$EDUC

[Nikodemos]

Let's see if we retest & BREAK-UP THROUGH $13.- here...


$EDUC

[Nikodemos]

LOVED those sub-$10's; ESPECIALLY at the 200DMA... & AFTER that gap down.

Simply could NOT resist buying there...

GREAT to see the pop ...& MOVE UPWARDS here...

NOTE: All they need to do now is announce the restoration of their divi's (which I anticipate is NOT TOO far down the road here; perhaps in 2018/19) & the stock is at $15+ (& may be running $20) before next Christmas EASY PEEZY!!! Bought this guy before (around the sub-$8's) but didn't get NEARLY enough as I was expecting a break DOWN lower with all the short-interest involvement; but they (shorts) let me down BIGGLY!!

A beaten down stock in a family-owned business that has stumbled into lower valuations as they've endeavored to "modernize" operations BUT ran into significant challenges managing their GROWTH. But with a solid product, brand, loyal followers, & room for MORE GROWTH as they get their software & systems prepared to handle it they're capable of huge valuation higher from here...& then there is ALWAYS the opportunity (to revisit the incorporation, &/or even a BUYOUT) with AMAZON.

Time will tell....ALWAYS DOES!!



$EDUC

[zino]

lets see some teen price today

[wadirum1]

Sold my remaining shares this afternoon. Nice prices!

[zino]

Revenues $106,628,100, an increase of 68%...Eps $0.70 Cents

[value1008]

It's not obvious from that PR, but on p. 36 of the 10-K you'll see a comparison of each of the quarterly earnings with last fiscal year's qtrly earnings.

EDUC's Q4'17 saw EPS of .16, whereas the comparable Q4'16 was a negative: -0.03

Big improvement!

[value1008]

Here's the text of the PR released before the 10-K:

Educational Development Corporation Announces Record Fiscal 2017
05/30/2017 @ 4:36PM
GlobeNewswire Inc

Educational Development Corporation (“EDC”) (NASDAQ:EDUC) (http://www.edcpub.com) today reports record net sales and earnings per share results for the fiscal year ended February 28, 2017.

Randall White, CEO of Educational Development Corporation, announced that for the fiscal year 2017, the Company reports record net revenues of $106,628,100, an increase of $43,009,800, or 68%, when compared to $63,618,300 for the previous year. Fiscal 2017 net earnings totaled $2,860,900, compared to $2,119,300 in fiscal 2016, an increase of 35%. Fiscal year 2017 earnings per share were $0.70 compared to $0.52 the previous year, up 34% on a fully diluted basis.

The direct sales division, Usborne Books & More (“UBAM”) continued to have strong growth this year driven by the success and growth of our active sales consultants. Net revenues in this division increased by 85% from $52,786,900 in fiscal year 2016 to $97,620,600 in fiscal year 2017. The number of active direct sales consultants also increased to 25,800 at the end of fiscal 2017, an increase of 32% over the active consultant count from the end of fiscal year 2016.

The retail division, EDC Publishing, experienced a decline in net revenues due primarily to order cancellations in the second half of the fiscal year when our shipping lead times were delayed. EDC Publishing revenues declined $1,823,900, or 17%, from $10,831,400 in fiscal 2016 to $9,007,500 in fiscal 2017.

Per Mr. White, “Fiscal year 2017 is the second straight year of amazing revenue growth. We exceeded the $100M Annual Sales hurdle for the first time in the Company’s history and achieved record earnings per share. This success could not have occurred without the incredible effort of our UBAM Sales Consultants and the hard work of our office and warehouse employees.

In addition to the revenue growth, the Company also completed our first full year in our new office and warehouse facility. Along with the facility upgrade, we implemented a new inventory tracking system and warehouse management system to improve order fulfillment and a new accounting system to improve financial reporting. We will see the benefits from these new systems in the months and years to come as we now have the ability to ship more orders on a daily basis and have improved insight in our financial performance.

During the second half of the year, the Company also went live on a new sales consultant front office system. The conversion to this system created several sales and operational issues and it became clear that the new system was not going to be an acceptable front office solution for our consultants. We changed back to our proprietary system in February of 2017 and recognized an impairment for the development costs. While the planned conversion was unsuccessful, we are now focused on making enhancements to our original proprietary system to ensure our sales consultants have a front office platform that helps them succeed.”

EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENT OF EARNINGS
Twelve Months Ended February 28(29)
2017 2016
NET REVENUES 106,628,100 63,618,300
EARNINGS BEFORE INCOME TAXES 4,612,100 3,545,900
INCOME TAXES 1,751,200 1,426,600
NET EARNINGS $ 2,860,900 $ 2,119,300

BASIC AND DILUTED EARNINGS
PER SHARE:
Basic $ 0.70 $ 0.52
Diluted $ 0.70 $ 0.52

WEIGHTED AVERAGE NUMBER OF
COMMON AND EQUIVALENT SHARES
OUTSTANDING:
Basic 4,077,695 4,049,154
Diluted 4,082,854 4,051,678

EDC will host its annual results Investor Call including a live Q&A webcast on Thursday, June 1, 2017, at 2 PM CT (3 PM ET). Randall White, the Company’s CEO and President and Dan O’Keefe, CFO and Secretary, will present the annual results and be available for questions following the presentation. Phone lines for participants will be available at [phone] (International callers can use [phone]). The conference passcode is 30584390. The weblink to the call is http://edge.media-server.com/m/p/dukm7e7s

The link to the webcast, including replays will be available following the event at www.edcpub.com/investors.aspx.

About Educational Development Corporation (EDC)
EDC is a publishing company specializing in books for children. EDC is the exclusive United States distributor of the UK-based Usborne Books and owns Kane Miller Publishers; award-winning publishers of international children’s books. EDC’s current catalog contains over 2,000 titles, with new additions semi-annually. Both Usborne and Kane Miller products are sold via 5,000 retail outlets and by independent consultants, who hold book showings in individual homes, through social media, book fairs with school and public libraries, direct and internet sales.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

[value1008]

New earnings PR and full year 10-K are out.
I'm busy working on another project and so will not be able to analyze carefully until tomorrow. From what little i glanced at, things look very good!

Here's a link to reading the full 10-K report:
https://seekingalpha.com/filing/3573436?uprof=44

or you can just look to the lower right of this post and click on the IHUB link....

[wadirum1]

I agree. And yet the chart right now suggests to me that EDUC has not yet found a bottom. Just trying to time my re-entry.

[value1008]

The entire gist of that second basher piece is that there MAY be as much as $4mil of consignment that has accumulated over the years, been booked as sales revenues, and which MAY never be entirely collected, in which case past earnings would need to be re-stated, etc.

For a co. that is slated to do, what, $120M this year in revs and likely more next year, a tiny, tiny portion of which may be consignment "sales," i don't think this will ding earnings more than a tiny fraction.

Yes, it might become a nuisance, but nothing major. That's why i'm happy to hold this relatively small number of shares into earnings.

[wadirum1]

Congrats on getting that bid filled.

I guess I should check out SA.

[value1008]

Yeah, my "stink bid" for 1k shares at 6.90 got filled yesterday on the sudden plunge. That plunge no doubt came from another hit-piece at S.Alpha by the same guy who wrote a longer piece last week.

I surmise that CEO Randall White will come out with some good comments on earnings report to juice the stockprice back up.

I like how he has twice now this year come out with PRs to inform investors about good news with the co. (first time in early April, a few days after that first hit piece by the other guy in late March).

[wadirum1]

Coming down to where I might want to jump in again...

[wiltonio]

Red Oak Partners, LLC has filed a new activist 13D, reporting 7.15% ownership in $EDUC - https://fintel.io/so/us/educ

[wadirum1]

Yes, there are no doubt many disgruntled "consultants" or MLMs. That happens. But so long as the numbers are good, I think the stock will do well.

Still, I suspect that the company is still struggling with the computer problems and inventory, and if short sellers are involved it could go lower.

So, I'm watching and waiting for a time to buy.

One thing I'm looking at is this pincher chart:

[value1008]

The PR yesterday from CEO Randall White was a good succinct rebuttal to two of the points in the shortseller's argument in the S.Alpha article-- namely, big revenues and 27k consultants currently.

[wadirum1]

Hoping to jump back in here if the PPS keeps coming down. Decided not to buy on the first bounce from its recent plunge. Getting close to a good entry point, maybe.

[value1008]

EDUC - alert! i and others made a nice little profit on this one a few months ago. Now as of yesterday morning here's a lengthy shortseller piece out on it at S.Alpha by a guy with only 136 followers, but it's being rated a "Top Idea" by S.Alpha editors.

https://seekingalpha.com/article/4058953-davids-sling-turning-boomerang-return-path-educational-development-fv-60-percent-lower?auth_param=a71m:1cds6kk:d280dac2a797ca3aab04152589972dbe&uprof=44

He's giving a price target 60% lower at $3.50.
Serious charges he's making here.

Anyone care to rebut them?

His summary points (note: SSKillz had already discussed the third point some weeks back at the Ihub Savvy Trades board):

• Terminally broken MLM business bleeding consultants at an already rapid rate that should worsen.
• Little to no liquidity remaining; existing leverage and a new banking relationship likely limit flexibility from traditional sources.
• Major execution risks as company undergoes a rip out of a failed IT system implementation and reverts back to an antiquated one.
• Accounting issues, controller resignation, potential restatements and CEO/management arguably posting insider info on message boards/social media.
• Equity fair value 60% lower at ~$3.50 on a probability-weighted basis, but could certainly prove to be worth much less.

[wadirum1]

Getting to be time for keeping a close eye on EDUC for re-entry. So far this pull-back has been on very light volume and huge spread. Chart is looking anemic, but these prices are starting to look good.

[wadirum1]

I sold today. Got a sweet return on investment.

I'll buy back if it dips.

But I'm sort of kicking myself thinking that this thing is looking very, very strong.

Then again, it is always nice to book profits!

[wadirum1]

Upward march seems to be continuing! Go $EDUC!

[Uglytuco]

That would be nice.

[wadirum1]

Last week with trading under $10?

[wadirum1]

Sweet!

[wadirum1]

He might increase his salary, but as for his statement in the CC, I took that to be a bit of a joke -- sort of saying that he doesn't take that decision lightly, since he holds 800,000 shares himself.

He doesn't strike me as the sort of person who would claim that the company needs cash, cut the dividend for that reason, and then put all the proceeds directly into his pocket.

I guess time will tell. But I think this dividend cut is a good idea. And I like it that they went ahead an pulled the band-aid off quickly.