LOPE

Grand Canyon Education, Inc.

Consumer


Presented:10/29/2014
Price:$46.97
Cap:$2.19B
Current Price:$134.43
Cap:$3.96B

Presented

Date10/29/2014
Price$46.97
Market Cap$2.19B
Ent Value$2.10B
P/E Ratio20.28x
Book Value$9.63
Div YieldN/A
Shares O/S46.70M
Ave Daily Vol360,000
Short Int3.34%

Current

Price$134.43
Market Cap$3.96B
Grand Canyon Education, Inc., together with its subsidiaries, provides postsecondary education services in the United States and Canada.It focuses on offering graduate and undergraduate degree programs in the areas of education, healthcare, business, and liberal arts. Thecompany offers its programs through campus in Phoenix, Arizona; online; and onsite at facilities, as well as at facilities that are ownedby third party employers. As of March 31, 2014, it had 61,600 students enrolled in its programs. The company was founded in 1949 andis based in Phoenix, Arizona.

Presented by: Scott Fearon, President, Crown Capital Management at The Excellence in Investing: San Francisco conference

Publicly traded companies mentioned herein: Apollo Education Group Inc (APOL), DeVry Education Group Inc (DV), Education Management Corp (EDMC), Grand Canyon Education Inc (LOPE)

Highlights

Grand Canyon Education (LOPE) is often lumped in with online/ for-profit education companies such as Apollo Education Group, DeVry and EDMC; however, Mr. Fearon – who generally looks for smaller-cap, misunderstood companies – believes a few material differences between LOPE and its peers could drive substantial upside for shareholders. “Fortunately” for Fearon, the company reported solid earnings just before his presentation and raised guidance. He is long the stock and sketched out his bullish thesis – and path to $180/share - as follows:

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Idea Discussion

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