1. Strong competitive advantage in the for-profit university industry. SEI has established brand names and strong alumni support. Capella University is recognized by Georgetown University Center as having one of the highest long-term returns on student investment of any university in the country. Jack Welch Management Institute is recognized by Princeton Review for the fifth year as one of the top 20 online MBA degrees, advancing to 15 in 2021. Additionally, SEI has strong alumni support. The graduates are effective ambassadors of SEI and could provide valuable referral opportunities for the new students.
2. Acquisition to explore the Australia and Asia Pacific market. SEI completed the acquision of the Australia and New Zealand academic operations of Laureate Education in November 2020. Laureate Education is the only investor funded university among Australia’s 43 universities. The newly acquired Torrens University is very strongly positioned in Australia and the Asia Pacific. This acquisition will enable SEI to meet the fast-growing demand for quality education services and forge a formidable presence in Asia and the Pacific market. Given the synergies, we could reasonably expect that the revenue will grow and the margins will be higher post acquisition.
3. Competent management. The management has strong operation skills and capital allocation skills. In order to maintain SEI’s strong ability to take advantage of the Title IV program, the management adopted effective detailed policies, such as the smart borrowing program to make sure students only borrow reasonable amount of money under the federal loan. Additionally, the management deploys the accrued capital very well to create value for the shareholders. SEI has only done two major acquisitions in the past 20 years. The management also emphasized the corporate goals and cultures of SEI set 20 years ago in the latest annual report. Shareholders are always fortunate to own a business with great management like this.

Strategic education inc Short position Constructing our initial portfolio The firm has recently reached its 52-week low so according to our 52-week high/low momentum investment strategy, we expect the firm to be decreasing in value further in the near future due to the negative momentum it is experiencing. (Aiming for 1.8 leverage ratio) Approximately $45 000 in each long and short position

Twin factor value strategy (smart beta)| long position | equal weighting | stocks with the highest earnings yield and ROIC|

$STRA is coming out of a very long fry pan bottom monthly chart pattern with a target price north of 260. Long this stock.