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Hi Anurag,

I love APEI, but I think the stock is a bit pricey at currently levels. In the mid-20's - where it was several weeks ago, but before I fully developed my for-profit education ("FPE") thesis - it would be a great addition to a FPE basket play.

As for APOL, I'm not the biggest fan. I've owned it in the past (years ago) and I just think they have a very aggressive, sales focused, questionable corporate culture. It feels like they are perpetually battling investigations and complaints from the SEC, DoE, FTC, heck I'm waiting for the FDA to find some problem with them.

I think this is one of those instances where size and notoriety actually works against Apollo and the University of Phoenix. Because of their size (and sub-par student graduation and repayment rates) they are the post child for this story. I believe they will more than survive this assault on the industry, but because of their size their downside risk is considerable compared to their upside potential.

I just believe, pound-for-pound, given the current price, BPI offers one of the most attractive plays on the sector.

While my write-up gives you the basics of my thesis, there are a ton of free options with this company, like their software-based subsidiaries, the hidden value in developing their military and corporate channels, and the potential of their "heritage" initiatives (e.g. growing their IOWA campus and their sporting teams ... did you know they compete in college sports?

Anyway, I'm hoping to get a couple of more follow-up pieces on BPI and the for-profit sector out sometime after the holidays.

Hope this helps, and feel free to post any additional questions you may have.

Happy Holiday and Welcome to the ALOHA Investing Army!


Andy L-C (TMFAloha)
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