Zach,
If you are still in this...any idea as to the large price increase on Friday? Their "preannouncement" gave indications that strong growth is continuing and potentially strong profitability is to follow. Have always... login to read the rest
I think VSTY will be able to earn .50-.60 for 2004, stk closed at 3.95
VSTY reported a 17.5% net margin this qtr.
I think VSTY is worth $6.50-7 a share, recurring revenue contracts and dominating... login to read the rest
VSTY... has doubled since write up. I think stk could add another 50%++ from here shortly. THey have mentioned in the past. going after distance learning (eg. potentially supply books to University of Phoenix Students,... login to read the rest
Zach,
I like this idea. You had mentioned you were meeting with management this week. If that meeting happened, do you have anything to share?
Given their low fixed cost, high variable structure, do you... login to read the rest
revs +52% yr/yr
School growth 67% to over 200 schools
.03 loss flat yr/yr
$1.10 in cash per share (62% mkt cap)
reading the qtrly now... but thesis seems to be playing out.. meeting with mgt on Monday. I
Varsity school growth grew 60% yr/yr to 160 schools.. the market is approximately 3000 for vsty target mkt
No Conference Call
But from Press Release:
"We recorded the first profitable fiscal year in our Company's history and... login to read the rest
1) Cash
management: Any clue what they are going to do with all their money? Share repurchases or a
distribution would be good. If they keep it all, the leverage on this idea is
decreased... login to read the rest
Zach-
I just read your VSTY write-up and am enamored with their business model at the moment. Being a recent graduate of a prep school (the larger Catholic kind), I wish that my school used Varsity.... login to read the rest
The guy to talk to @ varsity is Jack Benson... very sharp guy, CFO.
I believe that prep schools are about 80%+ of current revs.
If you go to their web site you will see... login to read the rest
http://chronicle.com/free/v49/i16/16a03501.htm
I'm curious about your reaction to the points in this article. Do you know how the VSTY business breaks down between prep schools vs colleges? Are there meaningful differences between those markets?
The article... login to read the rest
I used the term "moat" it is very early for VSTY, so the moat is small but growing as the company ramps up schools with 2-4 yr deals.
Big company's would have a hard time... login to read the rest
Thank you. I focus on micro cap names mainly between $20-200mm. Re your questions:
VSTY has 140 schools penetrated using targeted strategy of Private High Schools with 400+ students
The next closest competitor is (i think it... login to read the rest
I like this idea and I'm glad that it hasn't received much attention. Are there other companies competing for the same business? Any comments on how VSTY stacks (no bookish pun intended) up
I think these guys would sell for the right price.. which i think is north of $4. However, given that they are just beginning to show strong results from their strategy... I doubt that anyone... login to read the rest
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