Shares of Educational Development Corp (NASDAQ:EDUC) are up ~23% in the last two days likely due to a news story we found from the Tulsa World website stating that EDUC has bought 401,000 square feet of warehouse space as the company has outgrown its existing space. Quotes from the article:
“Hilti Corporation has sold its entire 401,000-square-foot Tulsa headquarters for an undisclosed sum.
As part of the sale, the Liechtenstein-based tool-maker will immediately lease back 180,000 square feet of office space for its Tulsa operations, according to a report from CB Richard Ellis Inc.
The buyer was Educational Development Corporation, an educational children’s book publishing company based in Tulsa. EDC plans to use the remaining 41,000 square feet of office space and 180,000 square feet of warehouse space at 5400 S. 122nd East Ave. as its new corporate headquarters…
…Randall W. White, chairman, president and CEO of EDC, said he believes the property will be a great fit for the future needs of his company.”
“EDC had literally outgrown our existing space,” he said. “The Hilti property is a great fit for our office and warehouse operations and will provide room for our continued growth. Over the last few months, our sales increased so rapidly that we borrowed some space from Hilti even before we closed the transaction.”
This is particularly significant news since this purchase has more than doubled the company’s warehouse space, supporting management’s bullish outlook.
Premium members will recall that we made a September 8, 2015 spotlight article available to them and our newsletter subscribers at prices far below current levels.
“On Wednesday, August 26th, we started tracking EDUC while it was at $4.94, citing the company’s aggressive expansion. We began to establish our position shortly thereafter, notifying our premium members via our morning e-mail on August 28th. With the stock trading near $7 today, we still see significant upside to our target price between $10 and $12.50.”
As the price has well-surpassed our target, we will watch closely for further developments and continually give position updates at http://portal.geoinvesting.com.
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