(GuruFocus, June 12, 2009) Steve Mandel of Lone Pine Capital is seen very bullish in education company Strayer Education Inc (STRA, Financial). In the recent Ira Sohn Investment Research Conference, where 1,200 hedge fund executives heard presentations on investment and short-selling ideas, Mandel based his case because he thinks:
Strayer Education Inc.is a regional proprietary institution of higher education offering undergraduate and graduate degree programs to more than 7000 students at eight campuses in Washington D.C. and Northern Virginia.
Strayer Education Inc. has a market cap of $2.89 billion; its shares were traded at around $206.36 with a P/E ratio of 33.7 and P/S ratio of 7.4. The dividend yield of Strayer Education Inc. stocks is 1%. Strayer Education Inc. had an annual average earning growth of 19% over the past 10 years. GuruFocus rated Strayer Education Inc. the business predictability rank of 3-star.
Steve Mandel bought into the company in 4Q06 with a position of 523,225 shares. He increased his holdings to 573,755 in 1Q07 and then again to 785,164 in 1Q09. Price of STRA has almost doubled since 4Q06 when he first bought the stock.
Recently, company Chairman and CEO Robert S Silberman bought 15,000 shares of STRA stock on 06/04/2009 at the average price of $195.46. Board Director Todd A Milano bought 1,100 shares of STRA stock on 05/28/2009 at the average price of $179.27. Judged from these insiders’ action, Steve Mandel may have a point.
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“The profitable, 100-year-old company has expanded rapidly since a private investor bought control and installed new management in 2001. Mandel told the audience that since then the company has grown to 60 campuses in 15 states and 45,000 students catering to working adults who seek bachelors' or masters' degrees.”He likes the company so much that the current valuation and questionable industry practice do not deter him.
"Over the next 10 years we believe Strayer will grow to 300 campuses and several hundred thousand students, and grow sales and profit eight-fold, all internally financed,”
Strayer Education Inc.is a regional proprietary institution of higher education offering undergraduate and graduate degree programs to more than 7000 students at eight campuses in Washington D.C. and Northern Virginia.
Strayer Education Inc. has a market cap of $2.89 billion; its shares were traded at around $206.36 with a P/E ratio of 33.7 and P/S ratio of 7.4. The dividend yield of Strayer Education Inc. stocks is 1%. Strayer Education Inc. had an annual average earning growth of 19% over the past 10 years. GuruFocus rated Strayer Education Inc. the business predictability rank of 3-star.
Steve Mandel bought into the company in 4Q06 with a position of 523,225 shares. He increased his holdings to 573,755 in 1Q07 and then again to 785,164 in 1Q09. Price of STRA has almost doubled since 4Q06 when he first bought the stock.
Recently, company Chairman and CEO Robert S Silberman bought 15,000 shares of STRA stock on 06/04/2009 at the average price of $195.46. Board Director Todd A Milano bought 1,100 shares of STRA stock on 05/28/2009 at the average price of $179.27. Judged from these insiders’ action, Steve Mandel may have a point.
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