| It's time to look at the For-Profit Education Sector. These stocks --Apollo Group (APOL), Corinthian Colleges (COCO), University of Phoenix (UOPX), Sylvan Learning (SLVN), DeVry (DV), and Career Education (CECO) have been scorching in the recent past (more than 50% YOY revenue growth) and have proven to be a safe haven during the recession. The investment thesis is this: 1) it is axiomatic that higher education and additional training leads to greater lifetime income; 2) the demand for better trained workers will be insatiable for the forseeable future; 3) the non-profit sector, especially public schools that are suffering from budget cutbacks, cannot meet the demand, and they do not serve those who are seeking technical/occupational training; 4) the stocks are counter-cyclical because during periods of rising unemployment, worker re-training heats up; 5) the for profit education stocks are great value, priced lower relative to the S&Ps. Hoping to generate some interest in the sector; dissenting opinions most welcome. |
