INVESTOR PLACE: Bail For-Profit Colleges as Long as Obama Is on the Prowl
Career College Central Summary:
President Barack Obama’s proposal to enable Americans to attend community colleges for free for two years shows that Washington still loves nonprofit universities and despises for-profit colleges.
And since the administration can easily deal for-profit colleges a deadly blow, investors should sell out of their for-profit education stocks sooner rather than later.
Pressure From Washington
Companies that are on the president’s enemy list typically have a rough go of things. Just look at the stock charts of the coal companies and BP plc (BP) … and of course, for-profit education stocks such as Apollo Education Group Inc (APOL), ITT Educational Services, Inc. (ESI) and Career Education Corp. (CECO) have already been struggling.
So history strongly suggests investors should avoid owning for-profit education stocks while President Obama is still in office.
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