With respect to the for-profit education stocks, most traders would agree that the charts themselves (irrespective of the underlying firms) have been trashy to trade for the past several years. These stocks always seem to rally when they look ready to head towards the Pink Sheets, and then break your heart with a fade virtually every time when they are beautifully set up to breakout much higher.
They continue to be heavily-shorted nearly across the board. And despite their undesirable reputation they are currently about as ripe as any sector I am seeing now, in terms of high beta issues which could benefit in what has been a resilient market.
In other words, if the bears are not yet done being squeezed in this leg of the bull, I have to think these trashy stocks are where the sharks will smell blood next.
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If you follow “Magic Formula Investing”, which screens stocks for such statistics as return on capital (basically deep value), the for-profit education companies have been showing up for years. Typically the highest ranked stocks on the screen are truly beaten-down names on the verge of bankruptcy. These education stocks repeatedly showing up as the top picks year after year correlates well with your observations – they taunt us and then fall back down. Guess we’ll see if this time is indeed different.
like dv with the open gap
i also like how school stocks are like sleezy ho’s
i like that girl