The Cash Flow model managed by Jose Betancourt uses fundamental analysis to focus on cash flow and negative net debt. Recently Betancourt added a couple of new positions to the model. The first was Bridgepoint Education Inc (NYSE: BPI). BPI had assets totaling $281.7 million in 2009 and liabilities totaling $147.1 million—an improvement over 2008’s total assets of $129 million and total liabilities of $93.7 million. The company’s net income in 2009 was $47.1 million. On October 13th BPI reached a closing price of $17.14. The following week, on October 19th, the stock’s closing price had fallen to $14.02.
The second position added to Cash Flow was Apollo Group Inc (NASDAQ: APOL), another education company. In 2009, the company’s total assets were $3.2 billion and their total liabilities were $2 billion. In 2010, the situation had slightly improved with assets totaling $3.5 billion and liabilities totaling $2.1 billion. Their net income in 2010 was $553 million. At the beginning of October, APOL closed at $51.93 (on October 1st). By October 15th the closing price had fallen to $36.58.It has since fallen further, closing at $35.38 on November 4th.
In the South America model managed by Andy Djordjalian, the focus is on South American companies in many industries. Recently, Djordjalian added Vale Sa (NYSE: VALE) to the model. VALE is a mining company with a presence in 34 countries. The company’s net revenues fell from $39.2 billion in 2008 to $24.7 billion in 2009. Their assets grew from $80.6 billion in 2008 to $100.8 billion in 2009. During the same two-year period their liabilities rose from $36 billion to $42.6 billion. On October 1st the company’s stock closed at $31.70. It has since risen, closing at $33.82 on November 5th.
