The Missouri Student Investment Fund bought Strayer Education (Ticker: STRA) two weeks ago on my recommendation. Since the purchase, STRA is up 7% and is outperforming the S&P 500.
Why its a buy:
-Consistently very profitable, with net margins around 20% and 4.5% dividend yield
-Continuing to expand geographic footprint
-Well positioned to meet new "Gainful Employment" regulations, which will allow it to gain market share as weaker players struggle with new rules
-Very little debt, consistently returns capital to shareholders
Risks:
-The for-profit education industry may face more regulatory pressure
-Declining margins in the short-intermediate term
-Litigation risk
If you would like the full Strayer Education Analysis report, please message me.
-Scott Thelen
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