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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