|
Please read carefully our disclaimers at the end of this newsletter. Market Stance: BEARISH (since April 27, 2010) Contents
Typical Client Performance
* An average of managed accounts, net after all commissions and fees. Click here for more performance data. Click here for information on managed accounts. Bought American Public Education (APEI)
* Buy prices shown are net after commissions and fees. Today, Thursday, June 17, 2010, I bought APEI, for both client and my personal accounts. American Public Education, Inc. provides online post secondary education to military and public service communities. It operates through two universities, American Military University and American Public University. They offer 76 degree programs and 51 certificate programs in various disciplines, including national security, military studies, intelligence, homeland security, criminal justice, technology, business administration, education, and liberal arts. This stock is a component of the IBD New America Index. ("IBD" = "Investor's Business Daily") Here's why I bought this stock: + Breakout?: Last Friday, June 11, the stock was up 2.9% on modest volume. This was an unconvincing breakout to a new 18-month high. The stock pulled back from there, but now it is now trying again to break through resistance in the low 47 area. Based on the stock's recent trading pattern, I think a more convincing breakout is coming soon. + Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +43%, +33%, +39%, and, most recently, for the quarter ended March 31, +43% to $47.3 million. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Jun 09 vs Jun 08: 30c vs 23c Sep 09 vs Sep 08: 29c vs 21c Dec 09 vs Dec 08: 46c vs 28c Mar 10 vs Mar 09: 43c vs 30c + Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2010 is $1.74, revised upward from $1.73 90 days ago (and up from 2009 actual earnings of $1.34); and the consensus estimate for 2011 is $2.38, revised upward from $2.34 90 days ago. + Valuation: At 20 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 30%, the stock is attractively priced. + History of earnings surprises: This company has reported earnings-per-share at least a penny above estimates in nine of the past ten quarters. Most recently, for the quarter ended March 31, they "beat the Street" by 2c. + The stock's 200-day moving average is rising, indicating a long-term uptrend. I chose to buy the stock in spite of the following negative factor: - The company's industry group ("Consumer Svcs - Education") is ranked #87 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally falling over recent weeks and months. -KD, Thursday, June 17, 2010
* Buy prices shown are net after commissions. ** Current prices are at least 20 minutes old. Welcome to The Deen's ListTM, an e-mail stock newsletter from Deen Capital Management, Inc. My intention is to inform you as quickly as is practical regarding my stock market moves. When I buy or sell a stock, first I take care of client accounts, then I buy/sell for my personal account(s), and then, third, I send out this newsletter. Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line. This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties. Your personal information, including your e-mail address, will be held in strict confidence by Deen Capital Management, Inc. We will not share it with or sell it to others. All stocks discussed in The Deen's ListTM involve a high degree of risk. It should not be assumed that any stock discussed in The Deen's ListTM or purchased by Deen Capital Management, Inc. will be profitable. Past performance is not necessarily indicative of future results. The information contained herein has been compiled from sources deemed to be reliable; however, we are not responsible for its accuracy or completeness.
The Deen's List Copyright © 2010 Deen Capital Management, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||