Welcome to the industry focus the podcast it dives into a different sector of the

stock market every day. I'm your host Vincent Shen and it's Tuesday September 19th

where a bit late to the party since schools across the country have already been in session for a few weeks

if not longer at this point, but this is going to be our back-to-school special and joining me for this

class via Skype, bar, for some of you this is not late to the part at all. You're like me, used to trip in the class five minutes late, you're right on time today.

There you go. So in previous years on industry focus, we've approached the back to school theme as an opportunity to kind of review

in fundamental investing or financial topics.

So last year, Assad, you and I actually talked about return on invested capital.

We had some real world examples of how companies applied or use that metric.

But this time around we're actually going to look at companies in the education industry as potential

investments. So some of you may have read or heard about the hits taken by for-profit

universities with enrollment at these schools declining rapidly over the past few years and a few big names

actually declaring bankruptcy as well.

Instead we're going to focus though on companies that are working somewhat behind the scenes

as technology becomes a big part of education,

it becomes a big part of how students experience the classroom,

and as online programs become more popular.

So, the first company we'll cover is Cheg, that C-H-E-G-G-G, and this is one that you brought to my attention.

They offer a ton of different services to students.

Can you give us a quick overview of the company?

Sure. Chag or Chag.com as students know it provides textbook rentals to students that's primarily what they're known for and

books were expensive when I was in school years and years ago. They've only gotten more expensive. So

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