Lousy economy may benefit online education companies

With a slowing economy and corporate layoffs being announced daily, look for online education companies to benefit. Many unemployed are and will be looking for a profession, and many employed people are always looking to make career changes. Online education companies are therefore enjoying higher enrollment rates.

Shares in Apollo Group (NASDAQ: APOL) are surging over 20% on a strong earnings report.

According to the AP: " Total degree enrollment rose 11 percent during the quarter to 345,300 students, versus a year ago. Apollo has boosted student retention with expanded academic programs, improved courses and other services." The company even managed to raise tuition by 4-10% depending on the program.

Pretty good business climate if you can both raise prices and increase enrollment. With a continuing weak economy, look for shares in online education to potentially be an interesting trade in a struggling economy.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 7/2/08.