Tweet
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Books allow parents to expand the language environment as they become their children's first and most important teachers. ... Parents should feel empowered to read aloud in Spanish, Chinese, or whatever their native language. Reading with your children helps prepare their minds to succeed in school. Reading aloud is one of the most important things parents and teachers can do with children. Reading aloud builds many important foundational skills, introduces vocabulary, provides a model of fluent, expressive reading, and helps children recognize what reading for pleasure is all about. Reading aloud to your baby is a wonderful shared activity you can continue for years to come — and it's an important form of stimulation. ... It teaches a baby about communication. It introduces concepts such as numbers, letters, colors, and shapes in a fun way. It builds listening, memory, and vocabulary skills.
The more you read to your children, the more knowledge they absorb, and knowledge is important in all aspects of life. There have many studies that show reading to babies and toddlers gives them a head start and helps to prepare them for school later down the line. After all, reading with your children gives them the skills needed for when they start to read themselves.
It is important that children learn to follow words across the page from left to right, and turn pages which are pre-reading skills that benefit children and help them to become better readers later on. Children who enjoy reading not only do better in language and literacy subjects, but in all of the different subjects as well.
There’s nothing better than cuddling up to your little one and reading a book or a bedtime story together. Spending time with one another, reading, and talking, can bring parents closer to your children. For parents who work, or have a busy lifestyle, relaxing with your child and simply enjoying each other’s company while reading can be a great way for you both to wind down, relax, and bond.
If you're like most parents, you'll do just about anything you can to increase the odds that your kids will be successful. So, what if I were to tell you there's a simple thing you can to do to make it more likely that they'll be successful in life -- specifically by increasing the likelihood that they'll learn to read other people, and even predict how they'll react? What's more, while this parenting practice might be a bit more time-consuming than some alternatives, it can also be a lot of fun and increase your bond with your children. We're talking about the way that parents read to their young kids. Neuroscientists say there's a trick that can make the daily bedtime far more effective and beneficial. People who read literary fiction develop better intellectual empathy -- meaning they can learn to better understand the thoughts and motivations of others.
We can spur the same kind of development in children by reading with them in a way that encourages them to put themselves in the story -- even simple stories. It's important to note that we're talking here about developing intellectual empathy, as opposed to emotional empathy. Intellectual empathy is the ability to perceive objectively how other people see and experience things -- from a distance. Emotional objectivity is more about the ability to actually see and feel things the way others do. Both can be beneficial, but to summarize, intellectual empathy might be more useful -- it helps people predict how others will react to them, can inspire them to come up with ideas and even products that will inspire others, and doesn't carry with it the risk of decision paralysis or inaction that emotional empathy can.
All of this makes sense. What you didn’t know is that it’s happening a lot more today than it did 10 years ago. If you thought parents were helicopter parents 20 years ago, you wouldn’t believe what is happening today. Obviously the trend is that parents are fully investing in their kids – and the millennials are trying harder and harder to be perfect at it.
That’s where Usborne books come in.
Today I bought EDUC (Educational Development Corporation) at 20. I will sell it in 4 to 6 weeks at 23.03 Here’s why I love EDUC:
This is a great chart…but it’s what is happening over the last few months which particularly interests me. This stock is up 84% in the last 12 months, yet its PE is only 16. I love good growth at a great value. Why is this happening? That’s where Usborne books comes in:
Usborne Books is a direct sales company founded in 1989. Its parent company Usborne Publishing/Educational Development Corporation was created by Peter Usborne in 1973. The company has been recognized twice as one of The 200 Best Small Companies in America by Forbes Magazine. The company was also recognized as one of America’s 100 Fastest Growing Small Companies three times by Fortune Magazine.
The company’s mission is to “deliver educational excellence one book at a time” and “provide economic opportunity while fostering strong family values.” The corporate United States headquarters for Usborne Book is located in Tulsa, Oklahoma. Usborne Books generates approximately $9.6 million in global revenue annually.
When our kids were little, we read Usborne books to them all of the time. They were awesome. Usborne Books is a direct sales company with over 1,500 titles geared for children and teenagers. Consultants are able to earn between 25 and 30 percent commissions based on total monthly sales volume. The cost to join the business opportunity and the price of the products are easily affordable for most families. The product is great. When the product is great, the product sells.
So…EDUC doesn’t even hire sales people. All of their sales people work for commission only…and they are selling a great product, a product they believe in, into a growing macroeconomic pool. Let’s hear it from the consultants (salespeople) themselves:
HEATHER:
“I've been involved in 3 Facebook Parties, and hosting my own in just over a week. Each order has shipped in roughly 2-3 days, and I have received them about a week after. The books are excellent quality and highly informative. The consultants have even gone so far as to check in with me the day the books were delivered and a couple days after the fact to make sure I was enjoying them!”
JENNIFER:
”I love this company! The books are so great for children, and the quality is amazing! I'm so thankful for so many of the books that I can enjoy with my children!!”
HANNAH:
“Usborne books are just awesome!! the contents are great and the illustrations are amazing! Good quality and reasonable price! My kids loves to read them again and again. about the shipping, I heard they had an issue of late shipping and customer service but seems like it has solved!I got my all orders in one in 2 weeks longest!”
MELISSA:
“These books have amazing illustrations!! They are so educational and keep the kids attention for a ling time! They are such good quality. Perfect gift!!”
How does all of this translate into earnings?
Well, Usborne is a subsidiary of Educational Development Corporation:
Educational Development Corporation, a publishing company, operates as a trade co-publisher of the line of educational children's books in the United States. The company offers various books, including Touchy-Feely board books, activity and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as science and math titles, and chapter books and novels. It operates through two divisions, Home Business and Publishing. The Home Business division distributes books through a network of independent consultants, who hold book showings in individual homes; and through social media, book fairs, direct sales, and Internet sales. This division distributes its products to school and public libraries. The Publishing division markets books to bookstores, toy stores, specialty stores, museums, and other retail outlets throughout the country. The company distributes children's books published by Usborne Publishing Limited in the United Kingdom. Educational Development Corporation was founded in 1965 and is headquartered in Tulsa, Oklahoma.
But…how does all of this translate into earnings….well, we just have to let the numbers speak for themselves:
Revenue
2015 - $32.5 MM
2016 - $63.6 MM
2017 -$106.6 MM
Earnings
2015 - $0.8 MM
2016 - $2.1 MM
2017 -$2.9 MM
See a trend? You bet you do. Now take a look at the most recent 4 quarters:
Revenue
$117 MM
Earnings
$5.1 MM
THAT’s what I’m talking about. This little secret is just getting out…and the stock price is about to go CRAZY! There are no ANAL-ysts covering this company. That means that this company is going to start getting covered! Wooooo! They let EDUC ring the NASDAQ Bell last week. That’s right, the cloak has come off.
The most recent earnings report, on January 11, 2018 had all of this most excellent news:
Company reports net revenues of $38,908,000, an increase of $8,210,400, or 26.7%, when compared to $30,697,600 for the third quarter of the previous year. Net earnings totaled $2,128,400 for quarter ended November 30, 2017, compared to $1,274, 200 for the quarter ended November 30, 2016, an increase of 67.0%. Earnings per share for the quarter were $0.52 compared to $0.31 for the same quarter in the previous year, up 67.7% on a fully diluted basis.
Check this out:
Our direct sales division, Usborne Books & More (“UBAM”), continues to be the largest operating segment of the Company. Net revenues of this division for the third quarter ending November 30, 2017 were $36,468,400, an increase of 32.0% from $27,622,600 reported in the third quarter ended November 30, 2016. The average number of active direct sales consultants increased 3,000, or 11.0%, to 31,100 for the quarter ended November 30, 2017, over our average active consultant count in the third quarter of last year.
More consultants mean more people pushing this excellent product, which means more revenue for the company and more earnings. The big difference is that these book moms are using Facebook to schedule and organize their sales meetings. Their reach is much more expansive than ever. They can get to hundreds of people – all potential customers, just by using Facebook. Remember, nothing is too good for the kids. IN
fact, sales were so strong, they couldn’t get the books out fast enough!
Now we come to the punch line. Last year, the company made $0.70 per share. Now remember, last quarter, EDUC made $0.52 per share. So for FY 2018, EDUC is going to earn $1.48 per share and in FY 2019, they will make $2.57 per share. That’s just the way this company is going to go down.
So if you take the $2.57 per share for FY 2018 and multiply it by the PE of 16, you get a stock price of :
$1.48 x 16 = $23.68 per share so we can see the value now immediately. As the months tick off in this year, we’ll get to next year’s earnings which would generate:
$2.57 x 16 = $41.12 which is well past my sell target. And away we go.
Here’s what the CEO, Randall White (not the defensive tackle for the Dallas Cowboys…another guy named Randy White) had to say:
“As we previously announced, our Company had record net revenues in our fiscal third quarter. These revenues were made possible through the technology and operational improvements that were made this year which increased our daily shipping volumes. Shipments during the quarter were able to keep up with incoming orders without creating a large backlog, which increased revenues and greatly improved customer satisfaction over prior year levels. This also resulted in minimal deferred revenue at the end of the quarter.
"We are also reporting record profits for the quarter. These profits result from increased volumes and operational improvements that were made during the last two years. ”
Hey…I am feeling good about investing in this company because it is investing in our future. Our awesome kids. So with the money I make on this stock, I am going to donate to a charity which supports reading for inner city kids.
I am HUGE!
$$$MR. MARKET$$$
Books allow parents to expand the language environment as they become their children's first and most important teachers. ... Parents should feel empowered to read aloud in Spanish, Chinese, or whatever their native language. Reading with your children helps prepare their minds to succeed in school. Reading aloud is one of the most important things parents and teachers can do with children. Reading aloud builds many important foundational skills, introduces vocabulary, provides a model of fluent, expressive reading, and helps children recognize what reading for pleasure is all about. Reading aloud to your baby is a wonderful shared activity you can continue for years to come — and it's an important form of stimulation. ... It teaches a baby about communication. It introduces concepts such as numbers, letters, colors, and shapes in a fun way. It builds listening, memory, and vocabulary skills.
The more you read to your children, the more knowledge they absorb, and knowledge is important in all aspects of life. There have many studies that show reading to babies and toddlers gives them a head start and helps to prepare them for school later down the line. After all, reading with your children gives them the skills needed for when they start to read themselves.
It is important that children learn to follow words across the page from left to right, and turn pages which are pre-reading skills that benefit children and help them to become better readers later on. Children who enjoy reading not only do better in language and literacy subjects, but in all of the different subjects as well.
There’s nothing better than cuddling up to your little one and reading a book or a bedtime story together. Spending time with one another, reading, and talking, can bring parents closer to your children. For parents who work, or have a busy lifestyle, relaxing with your child and simply enjoying each other’s company while reading can be a great way for you both to wind down, relax, and bond.
If you're like most parents, you'll do just about anything you can to increase the odds that your kids will be successful. So, what if I were to tell you there's a simple thing you can to do to make it more likely that they'll be successful in life -- specifically by increasing the likelihood that they'll learn to read other people, and even predict how they'll react? What's more, while this parenting practice might be a bit more time-consuming than some alternatives, it can also be a lot of fun and increase your bond with your children. We're talking about the way that parents read to their young kids. Neuroscientists say there's a trick that can make the daily bedtime far more effective and beneficial. People who read literary fiction develop better intellectual empathy -- meaning they can learn to better understand the thoughts and motivations of others.
We can spur the same kind of development in children by reading with them in a way that encourages them to put themselves in the story -- even simple stories. It's important to note that we're talking here about developing intellectual empathy, as opposed to emotional empathy. Intellectual empathy is the ability to perceive objectively how other people see and experience things -- from a distance. Emotional objectivity is more about the ability to actually see and feel things the way others do. Both can be beneficial, but to summarize, intellectual empathy might be more useful -- it helps people predict how others will react to them, can inspire them to come up with ideas and even products that will inspire others, and doesn't carry with it the risk of decision paralysis or inaction that emotional empathy can.
All of this makes sense. What you didn’t know is that it’s happening a lot more today than it did 10 years ago. If you thought parents were helicopter parents 20 years ago, you wouldn’t believe what is happening today. Obviously the trend is that parents are fully investing in their kids – and the millennials are trying harder and harder to be perfect at it.
That’s where Usborne books come in.
Today I bought EDUC (Educational Development Corporation) at 20. I will sell it in 4 to 6 weeks at 23.03 Here’s why I love EDUC:
This is a great chart…but it’s what is happening over the last few months which particularly interests me. This stock is up 84% in the last 12 months, yet its PE is only 16. I love good growth at a great value. Why is this happening? That’s where Usborne books comes in:
Usborne Books is a direct sales company founded in 1989. Its parent company Usborne Publishing/Educational Development Corporation was created by Peter Usborne in 1973. The company has been recognized twice as one of The 200 Best Small Companies in America by Forbes Magazine. The company was also recognized as one of America’s 100 Fastest Growing Small Companies three times by Fortune Magazine.
The company’s mission is to “deliver educational excellence one book at a time” and “provide economic opportunity while fostering strong family values.” The corporate United States headquarters for Usborne Book is located in Tulsa, Oklahoma. Usborne Books generates approximately $9.6 million in global revenue annually.
When our kids were little, we read Usborne books to them all of the time. They were awesome. Usborne Books is a direct sales company with over 1,500 titles geared for children and teenagers. Consultants are able to earn between 25 and 30 percent commissions based on total monthly sales volume. The cost to join the business opportunity and the price of the products are easily affordable for most families. The product is great. When the product is great, the product sells.
So…EDUC doesn’t even hire sales people. All of their sales people work for commission only…and they are selling a great product, a product they believe in, into a growing macroeconomic pool. Let’s hear it from the consultants (salespeople) themselves:
HEATHER:
“I've been involved in 3 Facebook Parties, and hosting my own in just over a week. Each order has shipped in roughly 2-3 days, and I have received them about a week after. The books are excellent quality and highly informative. The consultants have even gone so far as to check in with me the day the books were delivered and a couple days after the fact to make sure I was enjoying them!”
JENNIFER:
”I love this company! The books are so great for children, and the quality is amazing! I'm so thankful for so many of the books that I can enjoy with my children!!”
HANNAH:
“Usborne books are just awesome!! the contents are great and the illustrations are amazing! Good quality and reasonable price! My kids loves to read them again and again. about the shipping, I heard they had an issue of late shipping and customer service but seems like it has solved!I got my all orders in one in 2 weeks longest!”
MELISSA:
“These books have amazing illustrations!! They are so educational and keep the kids attention for a ling time! They are such good quality. Perfect gift!!”
How does all of this translate into earnings?
Well, Usborne is a subsidiary of Educational Development Corporation:
Educational Development Corporation, a publishing company, operates as a trade co-publisher of the line of educational children's books in the United States. The company offers various books, including Touchy-Feely board books, activity and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as science and math titles, and chapter books and novels. It operates through two divisions, Home Business and Publishing. The Home Business division distributes books through a network of independent consultants, who hold book showings in individual homes; and through social media, book fairs, direct sales, and Internet sales. This division distributes its products to school and public libraries. The Publishing division markets books to bookstores, toy stores, specialty stores, museums, and other retail outlets throughout the country. The company distributes children's books published by Usborne Publishing Limited in the United Kingdom. Educational Development Corporation was founded in 1965 and is headquartered in Tulsa, Oklahoma.
But…how does all of this translate into earnings….well, we just have to let the numbers speak for themselves:
Revenue
2015 - $32.5 MM
2016 - $63.6 MM
2017 -$106.6 MM
Earnings
2015 - $0.8 MM
2016 - $2.1 MM
2017 -$2.9 MM
See a trend? You bet you do. Now take a look at the most recent 4 quarters:
Revenue
$117 MM
Earnings
$5.1 MM
THAT’s what I’m talking about. This little secret is just getting out…and the stock price is about to go CRAZY! There are no ANAL-ysts covering this company. That means that this company is going to start getting covered! Wooooo! They let EDUC ring the NASDAQ Bell last week. That’s right, the cloak has come off.
The most recent earnings report, on January 11, 2018 had all of this most excellent news:
Company reports net revenues of $38,908,000, an increase of $8,210,400, or 26.7%, when compared to $30,697,600 for the third quarter of the previous year. Net earnings totaled $2,128,400 for quarter ended November 30, 2017, compared to $1,274, 200 for the quarter ended November 30, 2016, an increase of 67.0%. Earnings per share for the quarter were $0.52 compared to $0.31 for the same quarter in the previous year, up 67.7% on a fully diluted basis.
Check this out:
Our direct sales division, Usborne Books & More (“UBAM”), continues to be the largest operating segment of the Company. Net revenues of this division for the third quarter ending November 30, 2017 were $36,468,400, an increase of 32.0% from $27,622,600 reported in the third quarter ended November 30, 2016. The average number of active direct sales consultants increased 3,000, or 11.0%, to 31,100 for the quarter ended November 30, 2017, over our average active consultant count in the third quarter of last year.
More consultants mean more people pushing this excellent product, which means more revenue for the company and more earnings. The big difference is that these book moms are using Facebook to schedule and organize their sales meetings. Their reach is much more expansive than ever. They can get to hundreds of people – all potential customers, just by using Facebook. Remember, nothing is too good for the kids. IN
fact, sales were so strong, they couldn’t get the books out fast enough!
Now we come to the punch line. Last year, the company made $0.70 per share. Now remember, last quarter, EDUC made $0.52 per share. So for FY 2018, EDUC is going to earn $1.48 per share and in FY 2019, they will make $2.57 per share. That’s just the way this company is going to go down.
So if you take the $2.57 per share for FY 2018 and multiply it by the PE of 16, you get a stock price of :
$1.48 x 16 = $23.68 per share so we can see the value now immediately. As the months tick off in this year, we’ll get to next year’s earnings which would generate:
$2.57 x 16 = $41.12 which is well past my sell target. And away we go.
Here’s what the CEO, Randall White (not the defensive tackle for the Dallas Cowboys…another guy named Randy White) had to say:
“As we previously announced, our Company had record net revenues in our fiscal third quarter. These revenues were made possible through the technology and operational improvements that were made this year which increased our daily shipping volumes. Shipments during the quarter were able to keep up with incoming orders without creating a large backlog, which increased revenues and greatly improved customer satisfaction over prior year levels. This also resulted in minimal deferred revenue at the end of the quarter.
"We are also reporting record profits for the quarter. These profits result from increased volumes and operational improvements that were made during the last two years. ”
Hey…I am feeling good about investing in this company because it is investing in our future. Our awesome kids. So with the money I make on this stock, I am going to donate to a charity which supports reading for inner city kids.
I am HUGE!
$$$MR. MARKET$$$
Comment