Strayer is working to expand its geographic footprint and expand student enrollment. It recently opened two new campuses for the summer term in new Florida markets. The company has now opened six of the nine new campuses planned for 2008. Because of its strong enrollment growth of 19% for the spring term, management estimates that second-quarter 2008 diluted EPS will be in the range of $1.45 to $1.47. However, these projected results could be negatively affected should the company fail to increase student enrollment or successfully implement its growth strategy.
Badger Meter(BMI Quote - Cramer on BMI - Stock Picks) manufactures and markets flow measurement and control products. These products measure a variety of liquids, such as water, oil and lubricants. The company serves utilities, municipalities and industrial customers worldwide.
Badger operates in two business segments, utility and industrial. The utility products are used by both public and private water systems, while the industrial products provide flow measurement solutions in a variety of specialty industries including petroleum, food and beverage, pharmaceutical and concrete. The company was founded in 1905 and has major U.S. facilities in Wisconsin and Oklahoma. Foreign facilities are located in Mexico, Germany and the Czech Republic.
Badger has been rated a buy since August 2003. The company's strengths include its revenue growth, net income growth and return on equity. For the first quarter of 2008, Badger's revenue rose by 29.9% year over year. This growth appears to have helped boost earnings per share, which improved significantly in the first quarter, rising from 17 cents in the first quarter of 2007 to 41 cents. Net income increased by 134% over the same period, rising from $2.57 million to $6.02 million. Finally, return on equity has improved slightly from 18.6% to 22.3%.
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