InvestorsHub Logo

economics101

09/08/16 9:23 PM

#266 RE: macjoubert #265

The following is of course just my opinion:

ASPU is in a unique situation. I feel they have successfully differentiated themselves from other for-profit schools via their debtless education program. With that said, since they are such a small school, they (and their program) have yet to really get much publicity. They havent actually made a profit yey, but are getting close (I'd say proft in 1-3 quarters). They do have billionaire investor Leon Cooperman backing them, so its not all fluff.

The amount of success they have achieved thus far is amazing, but it has yet to be reflected in the stock price. Its tough to tell what the price will/could reach. I have hope that the stock price could hit multiple dollars within 5-10 years, which would make its market cap in the hundreds of millions. It would still be smaller than CPLA, DV, and STRA in this scenario. If this doesnt happen, its certainly possible one of these for-profits buys them out, which would also yield a sweet return.

With that said, another larger school could potentially try and replicate this process (as much as ASPU denies this could happen). The for-profit mess in general could drag ASPU down with it. ASPU is betting heavily mostly on one industry (nursing) continuously growing (>50% of revenue comes from nursing students). Hundreds of other things could happen and as with any stock, there is always risk (especially in penny land).

Im planning on holding, but I'm a beginner long term investor with a somewhat large position in the company and have much to learn and experience.

Best of luck to you, I hope you break even at the least.

economics101

09/08/16 9:23 PM

#267 RE: macjoubert #265

Great volume today too!