Colorado Technical University

American Public Education Inc @ $38 - Buy?

CMP: $38 American Public Education Inc. provides online postsecondary education directed at the needs of the military and public service communities. The Company offers a wide range of degree programs and certificate programs including national security, military studies, intelligence, homeland security, criminal justice, technology, business administration and liberal arts. APEI is a small-cap stock of current market cap $685 M. Its currently trading at a P/E of 22. Revenues have grown from $107 M to $198 M over the last 2 years. Profits have picked up from $16 M to almost $30 M in the same period. NPM has stayed stable at 15%. Its a good buy. http://www.nasdaqshares.com/2011/09/american-public-education-inc.html

Public Comments

1. I don't like online education companies at the moment for one reason. Right now with the employment picture looking the way it does, companies have their choice of candidates. When a company has their choice and they have 2 identical candidates standing in front of them, they are more likely to choose the candidate who attended a college on a physical campus versus a virtual one. As a teacher I know that many school districts will not even consider candidates who have bachelors or masters degrees from an online program. I think there is plenty of opportunity in the education sector, however look more for public companies that have physical campuses. All of this being said, I am not saying that American Public won't grow, I just believe that there are other growth opportunities out there. Hope this helps!