November 5, 2008 - Strayer Education, Inc. (STRA-NASDAQ) through its subsidiary, Strayer University, Inc., offers various academic programs in traditional classroom courses, as well as through the Internet. It provides undergraduate and graduate degree programs in business administration, accounting, information technology, education, and public administration through 60 campuses in 12 states including Alabama, Delaware, Florida, Georgia, Kentucky, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and Washington, D.C. As of September 31, 2008, Strayer Education had approximately 44,500 students enrolled in its various programs. The company was founded in1892 and is headquartered in Arlington, Virginia.

Enrollment soared to 44,564 students, up from 36,082 students in the same term last year. New student enrollment jumped 29% while continuing students were up 22%. Online students increased by 44%. Management raised forecasts for the fourth quarter above analysts' forecasts and said tuition would go up 5% in January. It also announced plans to open 11 new campuses. The annual dividend was bumped 33% to $2.00 a share. Shareholders of record on November 26 will get the new level of dividends on December 10.

Three of the new campuses will be one in Georgia and two in Florida, new markets for Strayer that expand its geographic reach. With these openings, the company had 9 new campuses for 2008. Margins may be compressed for a while as start ups costs are expensed, incurred by the new campuses.

More numbers: Market Cap is $3.12 billion. P/E is 41 while the forward P/E is 31. The Operating margin was 31.4% in the last 12 months with a Profit margin of 20.51%. Return on equity was an outstanding 38.49%. There is no debt. The Current Ratio is 1.8 (current assets divided by current liabilties). Book value is $12.64. The stock hit a 52 week low on March 6 of $142.14 a share. The high came on November 4 at $235.50. There are 14.23 million shares outstanding.

This is an exceptional company with management that delivered strong earnings for decades. It's expanding and entering new markets. The only drawback is the valuation. Investors love this stock, pushing it to an all-time high on the day of this writing. In a volatile market with a downward bias, this stock has performed very well. If you like the story, you'll want to find out more and most likely wait for a better entry point if it appeals.

- Company Web site: www.strayereducation.com

- Ted Allrich