The Wall Street Transcript publishes Education Stocks Issue.
Leading analysts examine the Education Industry in the just-published edition of The Wall Street Transcript, a vital review for investors and companies.
1) An in-depth roundtable forum featuring four prominent analysts; Matt Ankrum of Janus, Gregory Cappelli of Credit Suisse First Boston, Gerald Odening of Hambrecht & Quist, and Scott Soffen of Legg Mason Wood Walker. The panel examines growth factors, charter schools, child care, post-secondary, new areas, overseas operations, marketing, competition, investment concerns, management performance and stock recommendations. Soffen states, "We continue to believe that the post-secondary proprietary education companies like the DeVRYs (NYSE:DV) and the Apollos (Nasdaq:APOL) and ITTs (NYSE:ESI) will continue to be the strongest performers. We're beginning to see many new private companies, that are involved with the distance education aspect of post-secondary education evolve, which is bringing together the power of the Internet and higher education."
Other topics addressed by this distinguished panel: distance education vs. classroom instruction, impact of the Internet, K-12 sector, corporate sponsorship, and the future outlook for the sector.
The panel offers several investment recommendations, including: Argosy (Nasdaq:ARGY), Whitman Education (AMEX:WIX) and Quest Education (Nasdaq:QEDC), about which Soffen declares, "Quest's earnings should grow at over 20%. Earnings estimates have been rising, yet the stock has declined. The stock is now selling at under nine times calendarized 1999 earnings."
2) An "Off-the-Record" survey of analysts and industry experts, who praise and/or criticize 13 Education companies and managements, includes several recommendations and a few admonishments. Applause from a money manger for Greg Priest, CEO of CBT Group (Nasdaq:CBTSY), because "He's a very smart individual who's a good visionary and a good executor."
Accolades from an investment advisor for management at National Computer Systems (Nasdaq:NLCS), "Russell A. Gullotti, Chairman, President and CEO is `One of the best' and National Computer Systems has one of the best management teams out there. The company had close to 15 straight quarters of meeting or exceeding estimates. Russell Gullotti came to the company in late 1994, and took a very faltering stock and has just done outstanding things with it. He made all the right moves and has a lot of respect with his lieutenants, and they just execute, period."
But another industry management flunks with a money manager who states, "He's taking the company in a lot of different directions, just because there's growth in those areas, but some are not sure that he has a total understanding of the growth in every one of those areas."
3) Education Stocks - Robert Craig and Jerry Herman of EVEREN Securities investigate recent developments with the DOE, Title IV funding, the Tax Relief Act of 1997 and the reauthorization of the Higher Education Act. Craig states, "The business model that we're most enthusiastic about is the corporate sponsored business model. Within that model there are typically a couple of different variations. One where the child care provider, such as Bright Horizons (Nasdaq:BFAM), would receive a management fee associated with operating a facility for a corporation."
4) Education Stocks - Keith Gay of Thomas Weisel Partners. Gay examines the regulatory outlook, student loan programs, distance learning, and child care legislation. He forecasts, "We think that there is going to be a marriage of ".com and .edu" in 1999 with several exciting IPOs coming up."
5) Strayer Education, Inc. (Nasdaq:STRA) - An interview with CEO Ron Bailey covering industry trends, competition, and growth areas. Bailey states, "By successfully utilizing the cost efficiencies of the Internet we are able to generate substantial cost savings, not only to deliver education but also to provide quality services for our students. We have moved our bookstores, registration, and many other services online, which should allow us to operate efficiently and provide our students with superior services."
Other companies mentioned in this special 41-page Education Industry section include:
Caliber (Nasdaq:CLBR), Career Education (Nasdaq:CECO), Childtime Learning Center (Nasdaq:CTIM), Computer Learning (Nasdaq:CLCX), Corinthian Colleges (Nasdaq:COCO), Education Management (Nasdaq:EDMC), Edutrek (Nasdaq:EDUT), GP Strategies (NYSE:GPX), KinderCare (OTC BB:KDCR), Learning Tree (Nasdaq:LTRE), National Computer (Nasdaq:NLCS), Provant (Nasdaq:POVT), and Sylvan (Nasdaq:SLVN).
For information on how to obtain a copy of this issue, see http://www.twst.com/info.htm or call (212) 952 - 7433. The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.
The Wall Street Transcript is a premier weekly investment publication serving serious long-term investors for over 35 years. The Transcript publishes industry roundtables and interviews with Wall Street analysts, money managers, and company CEOs, and is read by top money managers, brokers, and individual investors.
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|Date:||Apr 27, 1999|
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