Apollo Group, Inc. (APOL)

While recently the cloud of SEC suspicion has pushed APOL off a virtual cliff, it's hard to argue with their underlying fundamentals. I suspect this is a case of dropping too far-too fast.

Fear of the SEC inquiry is presenting an opportunity to pick up a company with strong fundamentals at a bargain price.

BEST IN CLASS IN FOR PROFIT EDUCATION + INCREDIBLE METRICS

De recent decline was due to fear; be greedy when others are fearful! DCF and other analysis all give me a fair value of $90>. This combined with their great balance sheet makes me confident this stock will outperform!

Gap up to 74

informal investigation driving stock down

Apollo Earnings, Lawsuits and Outlook
I did a basic analysis of Apollo’s earnings, pending lawsuits and what to expect from this company in the future….

Every time one of these education companies gets investigated, the stock underperforms for a few quarters whether there is anything wrong or not.

A great time to pick up shares. Oversold on a simple SEC inquiry that would have little impact even IF justified. PE now 13 @ 62.00 price no debt, earning 3/4 B per year!

Opened my position on 27th Oct 2009 after hours for around 60, and I consider that as a great starting price. Stock sold off on a knee-jerk reaction due to a SEC probe into the revenue recognition. No big deal if you ask me. I think this one will remain on my outperform section of CAPS for long time.

The first three quarters of their fiscal 2009 have been a very good year for this company. High unemployment means people are going back to school. Seems to have been unjustly left behind in the recent market rally, as posted earnings have been very good.

Mmm...education...

Consistent and solid performer with moat & room to grow. Among the more appealing stocks in my best all around stock screener combining different investing strategies. Not that I expect it to because there's other factors involved, but forward valuation on the past 5 yrs. Avg. P/E (28.2) would put this stock of $144.

Here's the Best All Around Screener Criteria. Had to be somewhat liberal on a few things as only 41 tickers made it through the initial screen.

(Shares Outstanding (Mil) - Current < Shares Outstanding (Mil) - Year 1)
and (Market Capitalization (mil $) > 150)
and (PEG Ratio <= 1.2)
and (Cash / Total Assets % >= 10)
and ((Cash - Long Term Debt) / Market Cap % >= -13.78)
and (Free Cash Flow / Market Cap % >= 0.73)
and (Return on Equity % - Trailing 12 Months >= 13)
and (Return on Equity % - Year 1 >= 13)
and (Return on Equity % - Year 2 >= 13)
and (Free Cash Flow ($ mil) - Trailing 12 Months >= 0)
and (Free Cash Flow ($ mil) - Year 1 >= 0)
and (Free Cash Flow ($ mil) - Year 2 >= 0)

Very solid educational company, including u of phoenix. Sales growth is substantial enough at 18% and it is not having trouble reaching the bottom line. Also, this company is turning profits in investments and using its cash to buy back stock in streams of confidence.

High unemployment = money in the bank for these guys.

above 12 mo MA

It's a great company that shows long term historical growth, a low P/E, growing book and trade values. People will always want to go to school - the number of college intrants goes up every year. No long term debt - high returns on equity and capital and decreasing shares outstanding - Sign me up.

Great ROE & growth, tons of cash

Wow -- huge growth relative to p/e ratio -- double me up!