By Elyse Andrews, Editor of Cabot Wealth Advisory
From Cabot Wealth Advisory 5/15/10 Sign up for free Cabot Wealth Advisory e-newsletter
Longtime readers of our publications know that we’ve been discussing the growing for-profit education trend. And the boom isn’t over yet. In fact, Editor Mike Cintolo featured Bridgepoint Education (BPI) in Cabot Top Ten Report on March 22, writing this:
“Bridgepoint Education operates two traditional post-secondary schools: Ashford University in Clinton, Iowa, and University of the Rockies in Colorado Springs, Colorado. But 99% of its (or Bridgepoint’s) students receive their education online, so location really doesn’t matter. Bridgepoint offers associate’s, bachelor’s, master’s and doctoral programs in such disciplines as business, education, psychology, social sciences and health sciences. And the company is growing fast by expanding its virtual footprint, capturing students who fail to succeed in traditional physical colleges. In fact, Ashford University has now completed a total of 38 articulation agreements representing 134 college campuses, meaning students can transfer credits from those schools to continue to work toward their degrees through Ashford. Total enrollment at the end of December was 53,688 students, up 70% from the year before. The latest earnings release, on March 2, was superb, topping analysts’ estimates and leading to a rosy forecast for the future.”
The stock looks to be forming a base around its current level. I expect it to head higher once the market resumes its uptrend.
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A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Weekly. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times.
By Paul Goodwin, Analyst and Editor of Cabot China & Emerging Markets Report
From Cabot Wealth Advisory, 5/6/10. Sign up for free Cabot Wealth Advisory e-newsletter
Bridgepoint Education (BPI) is a San Diego-based, for-profit, post-secondary education company that has a great history of growing earnings. Bridgepoint was founded in 2004, and features a combination of traditional programs at a couple of universities, but well over 90% of all enrollments are online. The story is a good one, as for-profit institutions have pushed the possibilities for online higher education far beyond their old limits. In a challenging employment environment, online classes keep costs down and offer access without the restrictions of geography.
Beginning in Q3 2008, Bridgepoint began a series of seven quarters that featured triple-digit earnings growth. Revenue also increased at triple-digit rates right up to the two most recent quarters. And the numbers for the most-recent quarter—a 133% jump in earnings on an 85% gain in revenue—were disappointing only by comparison with previous blowout reports.
BPI is a relatively young stock, having come public in April 2009, and it began 2010 trading at 15. The stock is now around 25, after a huge surge in March, and is digesting its gains. The technical cue to look for is a breakout above its old high of 27.5 on heightened volume.
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Emerging Markets Specialist, Analyst and Editor of Cabot China & Emerging Markets Report
A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and editor of Cabot China & Emerging Markets Report since 2005. Under Paul’s stewardship, Hulbert Financial Digest rated Cabot China & Emerging Markets Report the number-one-rated newsletter of 2006 with a 78.6% gain for the year, the number-one-rated newsletter of 2007 with a 74.1% return, and the top-performing investment adivsory for five years with a 17.9% annual return.