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For-Profit EDU: Did the Dept. of Education Really Blink?

June 2nd, 2011

Details of the Department of Education’s Gainful Employment regulation were released this evening.  The full regulation will likely be published tomorrow on the Department of Education’s website here or here, or ultimately in the Federal Register by Friday...

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For-Profit EDU: Proposed Cuts to IL MAP Funding Could Establish an Alarming (and Increasingly Common) Precedent

May 16th, 2011

In a move that has received little attention among investors in the for-profit postsecondary education space, approximately 10-days ago, the Appropriations Higher Education Committee in the House of...

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For-Profit EDU: Checks with Private Institutions Indicate Enrollment Slowdown Continues to Gain Steam

April 20th, 2011

For an industry that has distinguished itself in the equity markets as a consistent source of trading opportunities, the “whip-saw” action in the for-profit education sector in the first four months of the year has...

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For-Profit EDU: The Cal Grant Precedent

April 19th, 2011

In a move that has been largely overlooked by most investors in the for-profit postsecondary education space, Governor Jerry Brown (CA-D) signed Senate Bill 70 into law on March 24, 2011.  While SB 70 includes many other elements aimed at reducing unwieldy budget deficits in...

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For-Profit EDU: What’s at Stake in the Pell Grant Debate – The Potential EPS Impact is Bigger than You Might Think

April 13th, 2011

There was a time not too long ago when investors in the for-profit postsecondary education sector viewed those institutions that generated a high percentage of their revenues from Pell Grant funding...

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For-Profit EDU: Why the Amended Complaint Against DV Might Be Worth Reading

March 8th, 2011

From what we can gather, few investors if any have paid close attention to the progress of the various securities class action suits filed against almost every one of the publicly traded for-profit postsecondary education companies.  We are...

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WPO: The Long Retrenchment At Kaplan Begins, Assessing WPO’s Earnings Power Going Forward

February 24th, 2011

Approximately 18-months ago, we scribed a letter to Warren Buffet, Chairman and CEO of Berkshire Hathaway about his sizeable ownership stake in the Washington Post Company. It might have been an audacious endeavor on our part...

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Winners and Losers from the FY08 3-Year CRD Data – The Usual Suspects

February 4th, 2011

The Department of Education released “trial” 3-year cohort default rate data this morning on an national level and institution by institution basis. Before we get into a discussion of the national level data and some of our findings on a school...

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For-Profit Education: 4Q10 FAFSA Data Confirms Enrollment Slowdown Across ALL of Higher Education

January 24th, 2011

Today the US Department of Education released data on the number of Free Applications for Federal Student Aid (FAFSA) submitted during 4Q10-11 (calendar fourth quarter of 2010).   In our view the FAFSA data provided by...

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For-Profit Postsecondary Education: Checks with Private Institutions Indicate STRA Was Not an Anomaly, the Slowdown Is...

January 19th, 2011

For an industry that has distinguished itself in the equity markets as a consistent source of trading opportunities, the “whip-saw” action in the for-profit education sector in the first few...

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For-Profit Education: What is "It"? The Implications of STRA's Pre-Announcement and APOL's Upcoming Earnings Release

January 10th, 2011

At the risk of dating ourselves, we couldn't help but think of Faith No More's edgy rock tune from the late 1980's "Epic" when STRA's negative pre-announcement hit the tape late Friday afternoon."What is...

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