Which of Newton’s Laws does this demonstrate?
“There would be some bullish rallies in weird places.” …well, education is a spot.
Tonight I’ll be going over APOL’s numbers. If you don’t know who APOL is, you may recognize them as The University of Phoenix, you know, the one you always see advertised on TV. Funny thing, I was sitting in the doctor office today watching random stuff like Family Feud, and during the commercials, I would see a bunch of “go back to school” commercials. Have you noticed this too? They really are pressing it! Notice the air time they are picking to post these ads… during work hours. Obviously there’s an unemployed target market here.
Anyway, it was a topic that caught considerable interest in Twitter land, and in my comments section a few posts ago. And what we came up with makes sense… in a recession, people tend to change jobs and careers (thanks Dogwood), and in order to do so, you need education!
Another trend I brought out, was that there must be some kind of correlation between unemployment numbers going up with demand for education going up. And that makes sense too, because when you think about it, the higher the unemployment pool is, the more the pursuit of higher education to bolster one’s chances. Survival of the smartest. Enrollment grew 18.4% at APOL, and I would pay close attention to this type of data (source).
It will be interesting to see how the education stocks perform in the weeks to come. With APOL, a leader in the industry, beating the street I have to say that dips in the education stocks should be bought and likewise I will stop shorting them (congrats to A-Dawg btw for holding earnings).
Anyway, here’s a list of education stocks with PPT scores. I think if the hybrid scores continue to improve, you will see the IBD100 top 25 get a bunch of education stocks in there.
APEI (2.21) … I was short this stock.
APOL (4.16) …ranks #7 on The PPT Universe before earnings came out. Check out its PPT score!
Blackboard (BBBB) 1.6
Ceco (CECO) 3.4 Rated a Buy
DeVry Inc (DV) 3.24 Recently hit a buy-point range from pullback
Strayer Education (STRA) 2.95 The post-secondary education company. Nice pullback here. I sold this stock above $200.
Universal Technical Institute (UTI) 2.42 Company similar to APOL
Capella Education (CPLA) 2.8 An online secondary education company.
Grand Canyon Education (LOPE) … it’s not yet in The PPT database, but this is one recent IPO stock I want to get in.
I’ll be carefully watching The PPT scores for these education stocks. I think if more and more get above 3, then we know the technicals are improving. Let’s face it, we need education…
-gio-
Check out $EDU also – Education in China!!
–joe
I am short EDU. covered half today for +10%.
some of these were in the IBD 100 last year around the summer.
Also COCO- Corinthian Colleges. The chart looks good.
CPLA is #17 on the IBD100 this week.
APOL fell on his head [sic]
“Another trend I brought out, was that there must be some kind of correlation between unemployment numbers going up with demand for education going up. ”
I think the following graphic should prove the above statement to be correct.
http://www.phdcomics.com/comics/archive.php?comicid=1078
I have LOPE notated 2 month 60min bar chart to email if anyone is interested
I bought today under 17 and will add on strength. judge momentum at 20
reciprocal action? been a lifetime ago
2nd law – force.
Ff = mkFn = Fg sin q (Fgx) = mkFg cos q (Fgy), sin q = mk cos q, tan q = mk = q tan(-1) mk
Good job John. It is Newton’s 2nd Law. Physics was my favorite subject in school. It makes you appreciate the little things, the invisible things, in life.
An object in motion will remain in motion, unless acted upon by Bernake and/or Obama.
_______
Yes, they are definitely pushing education everywhere – just take a ride on the NY subway, lots of “go back to school” ads.
A good data point I learned the other day – $APOL is the second largest online advertiser in the world. Second only to $MSFT. Thats a lot of U of Phoenix banner ads!