Doktor Cramer opened his “Mad Money” television show on CNBC last
Friday with a very positive review of Laureate Education Inc, LAUR;
NYSE. Cramer reminded us that this company was previously known as
Sylvan Learning Centers. The company has changed its name and its
corporate direction. It’s focused south strategically but not “going
south” technically.
While offering diplomas to anyone with the necessary financing was
initially a good business in the USA, students have displayed a
litigious tendency to seek compensation if they fail to land the type
of jobs they feel they prepared for. But in the overseas markets where
LAUR is now focused, students are putting down their cash and taking
their chances that diplomas will allow them to participate in the
growing Latin American economies.
Cramer pointed out that Morgan Stanley research recently put out a buy recommendation on the shares of Laureate Education
because of their sizeable presence in Chile, Mexico and Brazil. The
company recently bought the fifth largest private school in Sao Paulo,
Brazil and is moving into parts of Europe that offer good growth
opportunities, like Crete.
LAUR shares closed Friday at $53.25, up 81 cents or 1.5 % on the day.
Review provided by John Babington of TipLetter.com which can be found at www.CBS2.TV
