Education stocks run hot today with broad gains across the for-profit sector. Though it tips to...

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davidingeorgia Comments (2713)
 
>>Though it tips to the leftwing slow-mo fantasy dream sequence side, it has to be noted that former President Bill Clinton vigorously defended the confluence of government and education in his speech last night to the Democratic National Convention.<<

There. Fixed it for you.

It "has to be noted"? Well, yes, it sure does if your job is to pump up the leftwing bias at your web site. Otherwise, not so much.
6 Sep 2012, 01:42 PM Reply Like

Onepaw Comments (27)
 
Seeking Alpha always has that sharp eye--well ok, ear. Clintons' remark caught me as well. However, I think there is also a warning here. The mention of education as a solution to the present mess and the appallingly low showing American students have made probably should not be taken as an endorsement of more government easy money for schools that have not demonstrated positive outcomes. I don't believe that he was denying the impending sub prime bubble that Title IV loans will bring. Neither party can protect us from those chickens inevitably coming home to roost. But it does offer a brief respite from the agonizing pummeling that these stocks have endured.

Today Lawence Myers at Investorplace is forecasting gloom and doom certainly for EDMC. I would disagree. I would forecast a long drawn out battle that may involve criminal investigations and, almost certain, indictments. There are almost fifty lawsuits in various stages with this company. It is hard to imagine that it will have any goodwill value left in two years. If the DOJ lawsuit even goes to settlement it is going to be crippling to the embattled giant.
Some of the best coverage from the inside has come from the Pittsburgh City Paper. The organization is not fairing well and the company appears to lack management leadership. It may very well find a new home overseas and avoid US regulation. Whatever it does it is going to have a very hard time establishing goodwill and credibility if it ever can. This company has responded to pressure and attacks by making all of the wrong moves.

Really these guys are just following market value. As long as short is ok, Onepaw says what the heck they are bargain basement, I would get very nervous if they increased to their previous robust prices. These guys are going to weigh enormously in the next sub prime bubble. The way it will burst is one school at a time, but just as rapidly as the mortgage banks did.
6 Sep 2012, 05:14 PM Reply Like

jeffrito Comments (3)
 
As an assistant program director at a for profit I can tell you that my school is taking a lot of unfair flack. We provide quality education to people who can't attend brick and mortar schools onground. Yes, the tuition is high, the student debt is huge, and the jobs when they graduate rarely pay enough. Things are out of balance. But then we don't get tax money to subsidize the tuition and overhead like traditional universities. If we can subsidize farmers and oil companies, I think subsidizing for profit education is in order. This would provide a shot in the arm to our struggling education system, and provide new opportunities for non-traditional students who work fulltime, have a family, don't have the credentials for traditional higher ed, and can often only attend school asynchronously. We're in the process of weeding out the predatory schools. Don't make the mistake of lumping all for profits in the same category.
6 Sep 2012, 06:02 PM Reply Like

Lookhere Comments (23)
 
Who is "we"?
6 Sep 2012, 07:25 PM Reply Like