Bridgepoint Education (NYSE:BPI)

Unscrupulous Executives

BPI is severely undervalued, has nearly half its market cap in cash, and subtracting that, is trading at 2-3x free cash flow.

Private education is here to stay and the fears are overblown.

fundmentals

Most people don't know it, but the Federal government has mandated that all new graduate school loans be unsubsidized. Furthermore, a growing number of undergraduate loans are also moving into the unsubsidized realm.

These moves will put a higher strain on the already overwhelmed college student and make online schools even more attractive. Bridgepoint is well positioned to capitalize on this trend.

5x free cash flow for an 18% grower? Sign me up!

Good earnings growth, beating expectations on a regular basis. Company is a free cash flow machine and has over $250 mil. in net cash and investments.

Dreman. An adult ed stock that is actually growing and making money!

Understated equity with good FCF, ROE and ROA.

http://www.fool.com/investing/general/2011/11/18/this-industry-has-a-failing-report-card.aspx

It's a very simple play, for profit colleges are enrolling ever fewer students because they are not only expensive, but of dubious value. This is not something seen at just one college, but look at all the for profits. They may beat eps, but ever declining new students will mean continue decline in earnings creating a vicious cycle of ever lower p/e. Until they fundamentally prove their worth and get it out, I don't see how they are going to succeed in the long term.

Current Parameters
LT Debt-to-Equity Ratio
0.00 - 0.00
Return on Equity (TTM)
25.00 - 7078.00
Market Capitalization
1B - 10B
Gross Margin
60.00 - 100.00
CAPS Rating
All on 2011-11-04

The future requires a college degree. For-profit educators will grow. Bridgeport is the most ethical and best positioned right now.

HG

Fears of regulation are overdone.

Two small private universities. Maybe some growth here in the long term.

One seller does not a market make. Warburg Pincus is selling 25 million shares, announced today. This will almost surely be done off the market in a side deal; there should be no direct impact, and once people stop freaking out, BPI will be back in black, and making greenbacks in wheelbarrows,

Invest in yourself and seek Higher Education, coupled with the right Diet and Exercise.
I am betting you will be Amazed by the Results.
:-)

Very low P/E. Continued strong revenue and earnings growth. Good margins with high ROE & ROA. Like this one.

This company is not about education, but is similar in nature to the subprime lending industry that imploded in 2008. It is currently under investigation by the NY State Attorney General's Office. For a more extensive explanation, see the comment section from:

http://www.fool.com/investing/general/2011/05/26/rising-star-buy-going-to-school-with-bridgepoint.aspx