Special Situation Investing

Thursday, December 07, 2006

Apollo (APOL) - Purchasing Shares

Just a note that after all the commentary and a little more review on the situation, I have got to the point where I have committed some capital to Apollo. For the record, I got in today at $38.62. I feel that this is a decent (but not outright dirt cheap) entry point for a fundamentally high quality company. That being said, do your own research on this and all stocks mentioned on this blog.


  • Apollo is a good company and a good stock. As you have pointed out there have been many reasons not to own it over the past few years. I bought it at 50 a while back and sold it at 52. Under 40 represents a reasonable price but it is not without its problems.

    As with most turn around situations it takes guts to buy them at the bottom, and it looks like the bottom may have been put in at 33.33, that kind of has a ring to it doesn't it. Good luck.

    By Anonymous Anonymous, at 7:50 PM  

  • I think buying Apollo now is a poor decision. Apollo's earlier success comes from the slow adoption of online offering in the part of mainstream colleges and universities. Now more and more of the mainstream institutions are entering this market and Apollo is in poor position to compete.

    Just imaging this: Would you rather to have a degree/certificat from a University of Phoenix, or the same from THE University of Arizona.

    By Anonymous Anonymous, at 5:42 AM  

  • Apollo is not a good stock to own, IMO. I think it's in a very poor position to compete with the mainstream high education institutions as more and more of them started offering degree online.

    By Anonymous Anonymous, at 5:54 AM  

  • Thanks for the commentary. Good to hear some different arguments on Apollo.

    I am still going to hold my Apollo position. In spite of what the universities do, there will still be room for companies like Apollo. Not everyone wants to go for a full-on degree. Also, Apollo has already spent a lot of time fine-tuning their program. Apollo has advantages of scale over any university. Finally, if it really becomes a problem, what is to stop Apollo from joining up with a University? Given it's position & scale, it would make an excellent outsource candidate for University's education systems. At least some Universities may prefer this option rather than having their bureaucracy's try to compete in the real world.

    Just my opinion though.

    By Blogger spinoff, at 4:15 PM  

  • Looks like you were right and they were all wrong on Apollo, up 10 points!!

    By Anonymous Anonymous, at 2:08 PM  

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