In our recent 57-page Education Report  we spoke to Robert L. Craig and Jerry R. Herman of Stifel Nicolaus focusing on the OUTLOOK FOR EDUCATION & E-LEARNING and what Investors should be looking at;

Mr. Craig: We continue to be positive on the group. We don’t follow every company in the sector, we follow most of them and most of those quite frankly are rated buy and have been rated buy for some time. We think these valuations are attractive and there are various ways you can play this group. If you take a longer-term perspective, then in our opinion, the best attributes to look for are relative nascency or small size, quality as measured by student outcomes and satisfaction and value proposition for the student. Valuation is of secondary importance. On a nearterm basis, if valuation is what drives your investment decision, then there is an awful lot to work with here because, in our opinion, PE’s are very attractive relative to sustainable rates of growth.

Also the impact of the current Administration on the Industry is discussed;

Mr. Herman: Given the backdrop and the vision of this Administration, there are certain companies clearly positioned to be part of the solution to the problem of the shortage of post-secondary education capacity. Companies that we believe are positioned to help solve that problem and also have good student outcomes and academic performance include the likes of DeVry and Strayer and Capella, and even Apollo. Those companies have generally very solid metrics.

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This entry was posted on Friday, September 11th, 2009 at 10:07 am and is filed under Consumer Stocks. You can follow any responses to this entry through the RSS 2.0 feed.