Ambassadors Group, Inc. (EPAX)

Ambassadors Group is a Motley Fool recent newsletter pick that I felt was over valued. With a 20% stock price trimming today after disappointing Mr. Market with it's earnings I gave it another look. The recession has clearly affected it as it's bookings for student travel have dropped significantly. Ambassadors has a niche market moving around students, athletes and professionals domestically and worldwide. As such it carries no inventory and has decent margins, but growth depends on more users being added to the program. With profit margins of 20% and operating margins of 29% even in a period of no growth the revenue and cash flow stream are impressive. No debt, 11% insider ownership and top of it's class in this arena. Yes, it's business plan could be copied, but parents willing to shell out large dollars so junior or juniorette can get a lifetime experience are going to want some decent creditials. 1.5% dividend, three good quarters of growth. Current setback recession related, (meaning temporary?) and with a decent entry point Ambassador Group might be a worthwhile play. If the economy continues to lag, swine flu becomes an issue, or airline travel becomes undesirable then there might be a better entry point down the line, but at this time, the buy low and sell high model points to taking a chance.