Capella Education Company (NASDAQ:CPLA)

YoJeffro (54.86) Submitted: 11/1/2007 11:08:00 PM : Start Price: $67.00 CPLA Score: -44.66

Play on the online education

steveg519 (20.39) Submitted: 10/22/2007 3:47:26 PM : Start Price: $28.35 CPLA Score: +12.82

With a down housing market, people look to further there career. Perfect time for the online education for profit sector to see a boost.

veropierre (< 20) Submitted: 10/18/2007 8:51:41 AM : Start Price: $64.40 CPLA Score: -41.64

Ready for a split 2:1? I can smell it around $80

DLGarrison (36.28) Submitted: 10/10/2007 5:25:04 PM : 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.

scrubs620 (< 20) Submitted: 9/16/2007 12:43:23 AM : Start Price: $51.00 CPLA Score: -32.45

Target $60

addicus (< 20) Submitted: 9/4/2007 8:04:38 PM : Start Price: $50.29 CPLA Score: -31.65

Good academia

dealprince (< 20) Submitted: 7/27/2007 8:59:47 AM : Start Price: $40.59 CPLA Score: -16.79

specializes in on-line delivery of graduate degree programs, with credibility in key verticals like education and healthcare superior to that of bigger players like Apollo or Strayer. Will raise margins as growth levers infrastructure. Expensive but a 3-5 year story as grow earnings 25% p.a.

cmpinvesting (43.44) Submitted: 7/26/2007 5:49:35 PM : Start Price: $40.59 CPLA Score: -16.79

Favorable general environment when unemployment rate increases. Diverse education options and online (sometimes with local meetings for classes). Haven't looked at financials.

NetscribeServcs (54.41) Submitted: 3/12/2007 8:59:27 AM : Start Price: $33.22 CPLA Score: -5.72

Capella Education Company through its subsidiary Capella University provides post secondary online educational services offering doctoral, masters and bachelor’s programs across business, organization and management, education, psychology, human services, and information technology subjects. The course content is designed to enable working adults, develop specific skill set, which they can employ in their workplace and can be pursued from any location. Approximately 18,000 students are currently enrolled, representing 50 states and more than 56 countries.

As per the findings of Eduventures, an education consulting and research firm, over the past five years the online education industry in US has expanded from 500000 students in 2002 to 1.5 million in 2006. Further it is estimated to reach 1.8 million students by end of 2007. The high growth in demand for fully online education is largely attributable to the flexibility and convenience of this instructional format, as well as the growing recognition of its educational efficiency. Also the increase in the annual high school graduates would fuel the demand, coupled with employers demand for skilled and professional workforce.

CPLA has no ground campuses and is the only traded company, which operates 100% online. Its doctorate and masters degree contributes around 85% of the revenues. This puts CPLA into an advantageous position, as these programs are higher priced than bachelor programs and more profitable. The company expects top line growth to be robust in 18%-19%. With a strong brand and recognition, this company is well placed to beat the expectations.