Wed, Jan. 7, 5:30 PM
Sat, Jan. 3, 10:50 AM
- "The for-profit sector is dead," is the grim assessment from sector pioneer Michael Clifford.
- Tougher federal regulation enforced by the Obama administration and increased scrutiny by students on the value of diplomas have chipped the growth story down to a nub.
- Excess capacity in the sector could lead to tuition price cuts in 2015, warn analysts, particularly for post-secondary medical and technology programs.
- On watch: DV, APOL, STRA, ESI, CPLA, BPI, EDMC, COCO, APEI, LINC, NAUH.
- Grand Canyon Education (NASDAQ:LOPE) could be the outlier in the group. The stock managed a 4.6% over the last year on a higher mix of traditional campuses.
Oct. 21, 2014, 8:34 AM
Oct. 21, 2014, 7:33 AM
Oct. 20, 2014, 5:30 PM
Jul. 14, 2014, 5:37 PM
Jul. 14, 2014, 5:05 PM
- Apollo Education (NASDAQ:APOL) discloses the Department of Education plans to "conduct an ordinary course program review of University of Phoenix's administration of federal student financial aid (Title IV) programs in which the University participates."
- The review will "cover federal financial aid years 2012-2013 and 2013-2014, as well as compliance with the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, the Drug-Free Schools and Communities Act and related regulations."
Jun. 25, 2014, 8:25 AM
- Apollo Education (APOL) +1.7% premarket after FQ3 earnings beat expectation, although revenues fell 15.5% Y/Y to $799.9M.
- University of Phoenix enrollment totaled 241,900, a 16% decline but ahead of the company's forecast of 230K by August; new enrollment fell 13% Y/Y to 33,900.
- APOL narrows its outlook range for the year, now expecting revenue of $3.04B-$3.06B and operating income of $420M-$435M; it had previously forecast revenue of $3B-$3.1B and operating income of $400M-$450M.
- Today could be a stomach-churning ride for investors, if history is a guide: The average move for shares in either direction on earnings day during the last five years has been 10.7%.
Jun. 25, 2014, 7:32 AM
Jun. 24, 2014, 5:30 PM
Jun. 11, 2014, 11:30 AM| 22 Comments
May 22, 2014, 11:34 AM
May 2, 2014, 1:34 PM
- Joel Greenblatt's screen looks to find stocks with high "earnings yield" - a high ratio of profits to enterprise value. Companies are further screened for a strong return on capital. When a stock scores well with both criteria, it's usually a good company being undervalued by investors.
- For picking individual stocks, there are probably better methods, but as a group, Magic Formula names have vastly outperformed the broad market.
- Although defense names have done well over the past couple of years, the Magic Formula continues to identify Northrop Grumman (NOC +0.2%), General Dynamics (GD +1.4%), and Raytheon (RTN +0.6%) as attractive. Firearm names Smith & Wesson (SWHC +0.8%) and Sturm Ruger (RGR +0.3%) also make the cut.
- A number of videogame makers show up as well: Take-Two (TTWO +0.3%), Activision Blizzard (ATVI +0.2%), GameStop (GME +2.8%), and the struggling recent IPO King Digital (KING -0.3%).
- Not too surprisingly, the Magic Formula also continues to like plenty of big-cap tech names: Cisco (CSCO -0.2%), CA, Inc. (CA -0.5%), Microsoft (MSFT -0.5%), Hewlett-Packard (HPQ -0.5%), and Apple (AAPL +0.1%).
- Hardly market laggards, media names like Time Warner (TWX -0.8%), Viacom (VIA +1.4%), Omnicom Group (OMC), and Starz (STRZA +2.3%) also show up on the list, as do struggling multi-level marketers and for-profit education stocks: HLF, NUS, APOL, ESI, CPLA.
- Punished by investors for not being as hot as they once were, Coach (COH +0.2%), Francesca' Holdings (FRAN +0.1%), and Gap (GPS -1.3%) are Magic Formula picks today.
Apr. 2, 2014, 12:46 PM
Apr. 2, 2014, 8:30 AM
- Apollo Education (APOL) trades lower in early action after revealing a weakening enrollment trend.
- New student enrollment fell 16.5% Y/Y to 32.5K students while total enrollment is off 17%.
- During the firm's conference call, CEO Gregory Cappelli disclosed more information about the government subpoena the company received. The exec noted Apollo is being asked for details on UOP's operations in the northeast part of the U.S. (CC transcript).
- APOL -3.2% premarket
- Previous: Earnings, downgrade
Apr. 2, 2014, 8:08 AM
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