ITT Educational Services (NYSE:ESI) provides technology-oriented undergraduate and graduate education through its ITT Technical Institutes and Daniel Webster College.
I first discovered ITT Education at $14.25 in January. I, like most people following the company, was quite surprised at the valuation then. The stock was trading at 2.5x ttm earnings. Clearly, the market was pricing in some severe earnings deterioration so my next step was to determine what was so terrible about this company or its environment to justify such a cheap price. I already knew a good deal about the for-profit education industry from my investments in Bridgepoint Education (NYSE:BPI) and University of Phoenix operator, Apollo Group (NASDAQ:APOL). The industry was and still...
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