Lincoln Educational Services Corp (NASDAQ:LINC)

MCMI

Flyer on future growth and a recovering economy.

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.

school :(
div=12%
Total Debt / Equity    0.15
Price Earnings    3.30
Price/Sales    0.30
Price/Book    0.75
Price/Cash Flow    2.10

Magic Formula pick (currently undervalued)

9/18/11 Options Predictor Rank #5. P/C Ratio 0.006 and Call Sizzle 4.516.

The yield on this is extraordinary, combine that with no debt and a huge target market, especially in this economic environment and you have a recipe for success.

Single digit P/E, consistent earnings for at least the past 10 years with good growth, high ROE, healthy balance sheet, and good yield. Clearly a winner.

Higher quality students, more profits

Is it wrong that I like education stocks so much? The industry is great and is pretty recession proof. Lincoln has the highest dividend in the industry at a hefty 6% (even if it gets cut in half, still very reasonable) and a top 10 return on equity and earnings growth. Brand recognition is good, which is important in a competitive industry like this.

FINVIZ moving average pick

5 STAR, Small-cap, dividend payer

I believe its very undervalued presently and I see it as an opportunity

3Y EPS>10%/yr, P/E < 20, insider interest, P/B < 20

Educational Stock Pick

someone has to educate the growing number of jobless and non-college-going people.

might as well be a company who is increasing sales consistently, expanding course offerings, and developing a strong online presence.

Weak, unproven and inexperienced management team.

With the economy in a tails pin most people will begin going back to school to improve skills to get better jobs or change careers.

BAD EDUCATIONAL STOCK