If Your School Is Working for You, You Probably Aren't in K12's Demographic

In the following video, Ronald Packard, CEO and founder of K12, sits down with Motley Fool analyst Matt Argersinger and explains some of the perception challenges facing his company.

When Matt asks why K12 stock trades for less than its IPO price, Packard says it's been dragged down by the fallout from for-profit college stocks as well as strong political forces that favor the status quo. Nonetheless, he says, K12 has exceeded all of its revenue growth and EBITDA growth expectations.

Packard says K12 has been attacked by many entrenched forces that don't like that the company offers students choices. He states that K12's success -- it now has 130,000 students -- has attracted more critics.

Describing his student population, Packard says he "sees more than half of his students coming in below grade level," making for test scores that are worse today than they were five years ago, and he says K12 needs to "fix" them.

Poor test scores in K12's schools have hampered stock performance, but Packard ends the video by arguing that they are a "function of [the] demographics, not of what [K12] does."

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2319220, ~/Articles/ArticleHandler.aspx, 10/20/2014 7:22:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement