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Non-Tech : Education Stocks

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To: ~digs who wrote (28)1/22/2009 8:07:25 PM
From: Sam Citron  Read Replies (1) of 50
 
over bought...the trend is a bit 'long in the tooth' from an immediate standpoint

I am curious what metrics you focus on in forming such a tentative conclusion? Is it mainly technical or fundamental analysis? What types of data would you focus on when you look for inflection points in the stock price trend? Are you most concerned about student loan credit availability, financing costs versus graduate placement rates, student loan defaults, or what?

Obviously we had a nice positive earning surprise out of ITT Ed. today and the fact that it caused a 10% spike in the stock price of ESI, with 2-6% gains in the rest of the industry on a down 1.5% S&P day suggests that good news is still at a premium and not yet priced in these stocks. It would not be surprising to see some of these gains dissipate in the days ahead as we approach the next catalyst.

Would you tend to be more inclined to trade these stocks from a long or short bias, or would you perhaps be looking to a pair trade to reduce exposure to this volatile market?
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