Corinthian Colleges (CDCO) is in one of may favorite industries, Education. It is trading at $1.87 per share with a Working Capital per share of $2.35. If it gets to a 70% discount to Working Capital, I'll buy a bunch of it; if not, I'll skip it.
Saturday, October 29, 2011
An Interesting Development
One of the worst investments I ever made was in Harley Davidson (HOG), back around the 2008 crash. The thing I learned was that when Net Profit Margins are projected to narrow, you had better pay attention to getting out of one of these Holy Grail approaches I take, until the stock reaches a 70% discount to Working Capital, or Net Quick Assets, which ever calculation is available. I made a killing on General Electric (GE) later on with this new educational insight.
