Wednesday, May 28, 2008

Learning Tree For Sale

Learning Tree International (LTRE) has struck a committee of independent investors and put the company up for sale. Learning Tree has spruced itself up solving some previous problems and essentially losing some weight before she starts to date a little bit. Officially the major shareholders wish to liquidate or liquefy their investment (never really sure which phrase nuances correctly) and also to be generous to their charitable interest.

The problem with this entity is the lack of information. I do not mean the briefing book that the board is preparing. If you search through historical financial disclosure you will see plentiful product announcements which need to be parsed to determine marketing and therefore revenue information. You have no commentary about market trends, cycles and opportunities. Basically they explain if the seats in the school are full or not. Similar to what airlines do with load factors.

So if you have been following the stock do you really understand the fundamentals or do you just trust to greed and hope that the majority owners want the largest pile of cash. The Board has a very high ratio of consultants. The corporate website does not provide any substantive information on board member’s resumes and experience backgrounds.

I know they will be peddled. But how good a deal will it be?