Replies to post #31439 on Savvy Trades and Investments

[wadirum1]

I was just about to write the same thing.

The 8-K clearly states no capital raise for now (and in the CC the discussion was about trying to raise cash if the stock was, say, up at $17 -- not $7).

And the CEO was pretty clear that the dividend is in doubt. Frankly, if it can help them grow faster, then I in favor of cutting it as soon as possible. Others might not see it that way.

[wadirum1]

Here are some EDUC links and info I pulled together for a sticky post over on the EDUC board:


A) Most recent conference call transcript (a MUST READ for anyone thinking about investing): Q3 2016 Conf Call


B) 8-K clarifying the company will NOT be issuing shares down here:

On January 27, 2017, during an investor conference call held to discuss the financial results of Educational Development Corporation (the “Company”) for the quarter ended November 30, 2016, the Company provided remarks that referred to our capital structure. To clarify these statements, the Company has no plans to issue additional capital at this time.

On February 1, 2017, the Company repaid the previously disclosed advance from its President and Chief Executive Officer. link to 8-K

C) Based on CEO forward-looking remarks, if EDUC gets control of its explosive growth and can get back to 9 percent margins and hits $150M in revenues, that would be $13.5M net. Since EDUC has about 4M shares, that would be $3 per share in earnings, for a forward P/E of just over 2. Okay...maybe they don't reach those targets. But even if their margins are only half the target, they are still sitting at a P/E under 5.

D) One-year chart (should update automatically):