Stock Chart

STRA - Short the Education Bubble

04/26/2010 01:46 AM by Hesperian

A 33.3 PE is quite a rich premium to pay for am institution that gives out worthless degrees.

Smart money agrees, look at the 25% short interest.

Insiders have also been dumping shares.

I'm short STRA and DV, and may end up shorting the whole for-profit college sector by the time I'm through researching.

There's a Chinese property bubble, and a US education bubble. We all know it. Time to put money down on it.

Rating:
5

Submit a comment

In order to comment please sign in.

  • 04/26/2010 04:17 AM by Dave Pinsen

    I'm with you on the education bubble (as you know: http://steamcatapult.c... ), but we both know that what's fueling it is government loans and grants (e.g., 86% of the revenues of Apollo Group, which owns U. of Phoenix, came from federal student aid last year). Do you anticipate that government largess drying up in the near future?

    Rating:
    4
  • 04/26/2010 12:08 PM by Hesperian

    I expect that the public's acceptance of degree-mills like Strayer will dry up in the near future.

    If the government ever does decide to make education funding more efficient, I also doubt there will be much sympathy for the likes of Strayer. There's a good amount of Pell Grant / Loan fraud by for-profits out there, and I'm certain it's just a matter of time before "investigations" begin.

    Rating:
    4
View All STRA Posts
© 2009-2024 Launching Innovation LLC. A simple and effective website by Simande.