For Profit Education Stock Watch List is a Wild Ride

This week I have seen more wild behavior from the for-profit education companies. March 28th, Education Management Corp (NASDAQ:EDMC) was downgraded by some analysts and the stock tumbled over 7%. The next day EDMC bounced back up almost 6%.

This surprised me because several other for-profit education companies went down sharply on the 29th. Apollo Group, Inc. (NASDAQ:APOL) was down 4.25% and Strayer Education, Inc. (NASDAQ:STRA) was down 4.95%. All the companies in my watch list were down except EDMC.

Several months back, on October 14th, 2010, I saw what I thought was a strange thing. Many of the for-profit education companies dropped steeply in price at the same time. I started a watch list that day. (I will show my watch list below)

On January 10, 2011 I saw the same thing again. I like to take a quick look at the Google Finance home page during the day to see how the market is doing. In the trends section you can see the top five gainers and losers for the day.

Here is a screen shot I took of the Google Trends section January 10, 2011. All of the top five Losers at that moment were for-profit education companies.

This time I went to my watch list and looked for the best performing stock since Oct. EDMC was my choice and I added it to my inMessment Game portfolio. After it went back up 36% I took my profits and sold the position.

I haven’t bought any other for-profit education companies but I am still watching them. They are a wild bunch of stocks and are not for the faint at heart.

Here is my for-profit education Watch List as of March 29, 2011:

Name Symbol Last price Mkt cap Volume
Apollo Group, Inc. APOL 40.55 5804.53 9552248
DeVry Inc. DV 54.41 3767.43 875616
Education Management Corp EDMC 20.09 2722.58 371591
ITT Educational Services, Inc. ESI 68.37 1938.43 873149
Career Education Corp. CECO 21.86 1691.1 825255
Strayer Education, Inc. STRA 127.06 1686.04 602314
Bridgepoint Education, Inc. BPI 17.07 906.74 1048865
Capella Education Company CPLA 48.78 780.27 330619
Grand Canyon Education Inc LOPE 14.12 646.15 688422
Corinthian Colleges, Inc. COCO 4.4 372.1 3285331
Lincoln Educational Services Corp LINC 15.88 355.99 253706

(Please comment or email me if you know a WordPress Plugin that will show updated stock prices.)

This and other articles on this blog are for entertainment purposes. I am doing the best I can but I am still very much in a learning process. These posts are an effort to share this learning process only and should not be considered financial advice.

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