is IEDU stupid or we stupid?

Discussion in 'Stocks' started by qll, Jan 18, 2007.

  1. qll

    qll

    http://finance.yahoo.com/q/bc?s=IEDU&t=5y
    one of the top 10 stocks ever!.

    book value is negative (i did not do a detail research on that). what they do? they teach fools to trade stocks. so is IEDU investor really that stupid, or IEDU can find enough stupid investors?

    I am going to start a website now, and do a reverse merger, then see a 1000% in 2 years. haha.
     
  2. blast19

    blast19

    Unfortunately the latest PR is that they approved the purchase of TOS...sad day for some of us.

    The chart is very sexy looking for a short sale actually...especially since they're also increasing their AS and stock options grants.
     
  3. qll

    qll

    they are toooo sexy. i am afraid. unless it dropped below 13, i won't sell ---- learned it from my 3 month future career.

    i still can not find why they are traded at this level since 2002. what changed? i know their sales grow, but the growth is with loss, especially, when they don't have any book value. don't tell me it is another AMZN. AMZN at least has a stop and profit point. This one, i could not see. HANS is always profitable, I remember.
     
  4. blast19

    blast19

    Not advocating shorting it yet. But the company is some creepy scientology type scheme.

    Will definitely watch for it to go down a bit though.
     
  5. blast19

    blast19

    There you go...it's showing its weakness now. You could call it a pullback if you were bullish but with the TOS buyout approved I'm not everything this thing has in its pocket isn't built in now.

    It looks like its got a lot of room to go down.

    Shorted this morning under $13...just going to keep a tight stop on it for now but it looks ugly.
     
  6. Tiptoe

    Tiptoe

    I would be careful of a short position here. This company is a deferred revenue story:

    Pluses:
    Huge amount of free cash flow

    Deferred Revnenue recognition allows deferrment of taxes until growth levels out

    thinkorswim merger - lots of synergies with one of the most profitable brokers around (also were a #1 Barron's Option Trading Platform)

    Minuses:
    Have already had a large run up since May '05 and may be running out of momentum

    Deferred revenue model makes it more difficult to value and subsequently IEDU receives a lower multiple in the market

    Some believe they overpaid for thinkorswim

    I hope that sheds some light on the situation. I just want to let you know that the fundamentals may not be as weak as you think and I have been on the wrong side of a misread fundamental short before.

    Happy Trading.
     
  7. blast19

    blast19

    Thanks Tip.

    I know the fundamentals aren't all amiss and TOS is a kickass brokerage...I wonder how they felt about me shorting their new owners stock in my account with them? Oh well.

    Technically it looks a bit tired and I think that the stock looks ready to rest and give back some of its gains...I'll keep tight stops as usual.

    cheers
     
  8. blast19

    blast19

    Well...I was way off and got out before it moved back up...I knew it was going back up and hadn't pulled the trigger on going long for lack of cash but really wish I had.

    It's up over $2 or 15% or so in the last two weeks....someone sure values it highly...TOS was an excellent buy long term although they paid a nice premium on them.

    :D
     
  9. welcome Tiptoe good points, my eyes were glazing over with this stock- now I'm a little interested...
     
  10. nkhoi

    nkhoi Moderator

    did someome else suppose to buy TOS or I just get :confused:
     
    #10     Feb 5, 2007