Zovio $ZVO Going to the MOON πŸš€πŸš€πŸš€
The education technology services company that partners with the University of Arizona Global Campus, a pioneer in online learning, and owns Fullstack Academy, a coding Bootcamp, recently sold their underperforming K-12 focused tutoring service business for $55 million.

$ZVO has skyrocketed from $0.80 at the beginning of June to over $1.25 to date. With a 52 week high of $3.10, I expect the enthusiasm to calm down before climbing the mountain. However, with a growing revenue trend of $54.76 million, the future looks bright.

I have a target price of $1.75 before next earnings release… some say higher, others lower. Online higher education and coding boot camps are trending now, especially in times of recession as people seek to re-educate and re-skill.
Jensen Butler's avatar
Bob Dylan, stock trading extraordinaire. (part-time musician)
Joshua Simka's avatar
Never having heard of this company, I just spent about 5 minutes looking at their most recent 10K. They lost $7.4M in Q1, which is historically their best quarter. They have $33.7M in cash on hand. In April, they took out a $31.5M loan at an annual interest rate of LIBOR + 9% in order to pay penalties to California state, which sued $ZVO (and won) for providing prospective students misleading information about career outcomes and engaging in questionable admissions practices. Looks like $ZVO is appealing the court's decision and therefore litigation is ongoing. This single lawsuit is of tremendous financial consequence to this company. I'll stay away.

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