Capella Education Company (NASDAQ:CPLA)

CAPS Rating: 4 out of 5

An online post-secondary education services company, which through its wholly-owned subsidiary, Capella University, offers doctoral, master's & bachelor's programs in the field of health & human services, business management & technology & education.

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Player Avatar DLGarrison (36.28) Submitted: 10/10/2007 5:25:04 PM : Outperform Start Price: $48.97 CPLA Score: -31.62

I live in Minneapolis where Capella is based, have actually interviewed with the company, and work for a competing university. My thoughts on this one are:

(1) The company is a class act, run much better than the University of Phoenix for example.

(2) Capella's marketing is targeted and very effective.

(3) Where information systems are concerned, there is some volatility. This past spring, the IT department was experiencing some problems installing Oracle (Peoplesoft) CRM. There may be some scalability questions regarding the learning systems as well.

(4) Liquidity is an issue, as most of the stock is owned by insiders.

Still, the net is that this company is a good stock to own for the foreseeable future.

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