Hey lucas.2 things that stand out to me with this business:1....

Hey lucas.

2 things that stand out to me with this business:

1. It's a very low capital intensive business. The universities provide the campus, the classrooms, the infrastructure - not Navitas. They just focus on running the courses. The best thing - they get the tuition money up-front! That's why their ROE is through the roof. This allows Navitas to break even on a Uni within 18 months of signing a contract and to pay out 100% of profits as dividends. Which growth company on the ASX does that?

2. It's a scalable business. They've proven that their business model works and now they are just typing up Uni after Uni,. The more Uni's they get the more Uni's hear about them - the more business they get. I think of JB Hi-Fi when I look at them. Rinse and repeat business model. I believe they are looking at up to 10 Uni's per year.

As for the "current price" and when it's a good buy, I think I was the first to post on this stock under the "Anyone following this stock" thread. It was around $4 at the time and I was looking to get into it much lower. Right now I feel I made an excellent decision to just buy in and not wait for it to come back. My average price is $4.09. I personally think that its OK to pay for quality sometimes.