Congrats on the EDUC profits but I haven't even entertained the thought of selling any even though it is one of my larger positions. It seems like they finally got a handle on their shipping problems in January which were caused by their extreme growth coupled with their failed new software system. And although growth slowed as frustrated sales consultants quit or delayed ordering they seem over that hurdle now and are looking at getting back to historic margins or even somewhat better. The company is expecting over $200M in sales next year and if they can work their way back to "normal" margins this one seems very undervalued yet at present prices. IMHO
I liked this quote from CC talking about January sales Y/Y...
"We are currently up about 87%. So the same number of days last year compared to the same number of days this year we have revenue of, I am looking, 4.7 million, and the same number of days last year in January we had 2.7 million. So is the trend continuing? Yes. And I will tell you, if you talk to our field salespeople they are so excited about the fact that we have caught up on shipping. And there are people who've been sitting on the sidelines and said I am not going to order anything until they get that straightened out. And by the way, that includes our retail stores. It may take a little bit longer for them, but we have every hope that we will get the retail stores' business back and the customers. And so, that is where the growth is coming from in the future. And if you talk to them they will tell you it is going to come back stronger than ever if we can maintain our timely shipping like we are currently."
