Wednesday, August 8, 2007

Lincoln Educational Services Corporation

Lincoln Educational Services Corporation is a NASDAQ listed security that has been trading in a range between $11.35 and $18.26 over the past year. With 25,467,770 shares outstanding, a recent price of $13.90 gives a total market capitalization of $347,635,051. While there are certainly larger companies, Lincoln Educational Services Corporation has definitely earned its place in the pack. Last year, Lincoln Educational Services Corporation created $0.43 in earnings for every share outstanding.

Lincoln Educational Services Corporation is currently priced by the market at 32.60 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Lincoln Educational Services Corporation could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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