On CNBC this week, hedge fund manager Steve Eisman gave his first TV interview in ten years. Yes, he was the star in Michael Lewis' "Big Short," in which he made a bundle by shorting subprime securities.

Now Eisman has found another trade: for-profit education companies. In fact, his latest report is called "Subprime Goes to College."

This was another day mostly in and out of the red. The true closing bell levels were up in the air until the close. Japanese data and Chinese data led the headlines now that China has a larger economy than Japan. Education stocks were weak on steady pressure and many other sectors were seeing a mixed bag as the markets tried to balance between bears and bulls.

Here were the unofficial closing bell levels:

Dow Jones 10,301.86 -1.29 (-0.01%)
S&P 500 1,079.37 +0.12 (0.01%)
Nasdaq 2,181.87 +8.39 (0.39%)

ITT Educational Services Inc. (ESI), a provider of post-secondary degree programs in the United States, scores "100% on our Warren Buffett sceen," says John Reese.

The editor of Validea -- a newsletter that screen stocks based on the stated investment criteria of "legendary" investors -- explains, "This screen assesses stocks based on the stated investment criteria of the legendary investor. Below, we ask 'Is this a Buffett type company?', 'Should I buy at this price?' and also look at some of the specific criteria in which ITT passes the Buffett model."

According to a recent study from Credit Suisse (CS), it's common for people living in large cities in China to spend 30% to 35% of household income on their children's education. This helps to explain the boom in China's private education market.

This week, one of the largest operators in this market -- New Oriental Education (EDU) --- published its latest quarterly results. Revenues came to $61.2 million, up 23.8% over the year. The main growth drivers were higher enrollments in language training and test preparation.

What's more, New Oriental generated cash flow from operations of $9.6 million in the quarter. In all, there is $210 million in the bank.

"New Oriental Education (NYSE: EDU), which offers English language instruction to Chinese students, recently fell sharply after disappointing the Wall Street crowd," says Tony Sagami.

In his The Asia Stock Alert. the China stock specialist suggests, "This pullback is creating a buying opportunity. Indeed, this is your big chance to buy it on sale.

"Digging deeper, EDU's numbers contain both bad and good news. Among the good news, EDU earned $1.57 per share of profits last quarter, which is exactly what the consensus forecast was and 27% more than the same period last year.

In his new advisory service, Sy Harding looks for both long and short opportunities, based on both technical and fundamental factors.

In The Long and Short Advisor, he recently chose Apollo Group (NASDAQ: APOL) -- a leader in providing higher education to working adults -- as a new "long" recommendation.

The advisor explains, "Founded in 1973, Apollo now has more than 420,000 students, with more than 80% working full time. Its subsidiaries include the University of Phoenix, the College of Financial Planning, Insight Schools Inc., Institute for Professional Development, and Western International University.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"Apollo Group (NASDAQ: APOL), my top pick for 2009, has been an education provider for over 30 years," says Kevin Kennedy, a specialist in quantitative and momentum analysis.

The editor of The Coolcat Report explains, "The company's revenues and earnings have been steady despite the negative economy."

The advisor continues, "Apollo Group provides academic access and opportunity to more than 350,000 students through its subsidiaries, which include University of Phoenix.

"Other divisions include the Institute for Professional Development, College for Financial Planning, Western International University, Meritus University, Insight Schools and Apollo Global. It also owns Aptimus, a provider of innovative digital media solutions.

"The company's educational programs and services are provided at the high school, undergraduate and graduate levels in 40 states and the District of Columbia; Puerto Rico; Alberta and British Columbia, Canada; Mexico; Chile; and the Netherlands, as well as online throughout the world.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"New Oriental Education (NYSE: EDU), the largest English instruction and college prep course school in China, is my top pick for 2009 says China stock expert Tony Sagami.

In his specialized newsletter, the Asia Stock Alert, he explains, "Every time I travel to Asia, I'm on the lookout for new ideas; on my latest trip I found that one of the oldest stocks in our portfolio -- New Oriental -- is still one of the very best.

"I've previously attended New Oriental classes in Shanghai and Shenzhen before, and during the Olympics, I visited their home office in Beijing. The registration desk had a steady stream of students signing up for new classes throughout the day.

"Its bookstore was just as busy as the registration desk. The most popular books were Chinese versions of SAT, GRE, GMAT, and TOEFL (Test of English as a Foreign Language) preparation guides, as well as college-specific books.

"China places high value on education, making New Oriental Education & Technology Group (NYSE: EDU) somewhat defensive in a growth-stunted economy," says Chris Rowe. (Incidentally, we reviewed two U.S. education stocks in a post yesterday.)

Meanwhile, in The Tycoon Report, Rowe explains, "We believe a slowing global economy will have minimal impact on the education sector in China." Here's his review of this firm, which operates English language schools.

"New Oriental Education is a rapidly growing company that provides private educational services to over 1.3 million students via 207 school centers, primarily in the People's Republic of China. They help privately prepare Chinese for admission tests to foreign universities emphasizing English.

"It offers its program, service, and products in six areas: language training; test preparation; primary and secondary school; educational content, software, and other technology development and distribution; online education; and other services and products.

"I consider the stock to be somewhat defensive in a growth-stunted economy. And while you may be able to make large short-term profits on this stocks, the goal in this recommendation is to be very long-term holders.

Few stocks are poised to benefit from economic woes and rising unemployment. One group, however, that appears to be an exception is for-profit adult education stocks.

These companies, which operate school campuses and online education programs, are viewed by some as beneficiaries of a growing need for worker retraining and the rising demand for education by those changing careers or re-entering the work force as adults.

Leo Fasciocco is a technical expert, specializing in finding stocks that are "breaking out" -- those moving above previous technical resistance levels or poised to do so.

His two of the latest breakout stocks featured in his The Ticker Tape Digest are both in the for-profit education field: Apollo Group (NASDAQ: APOL) and Devry Inc. (NYSE: DV). Here's his assessment.

"Apollo, based in Phoenix, is the largest for-profit education company, with more than 300,000 students. APOL focuses on working adults and operates 259 campuses and learning centers in 40 states, as well as various international locations.

"Programs range from associate to doctorate degrees in areas such as business, education, health care, technology. The company said it is showing solid enrollment growth. Annual revenues are $3 billion.

"The company recently reported that net for the fiscal fourth quarter excluding special items increased 20% to 75 cents a share from 62 cents a year ago. Revenues for the quarter rose 17%. Analysts had expected net of just 64 cents a share. So, results were a positive surprise.

"For fiscal 2009 ending August 31, analysts predict a 17% increase in net to $3.31 a share from $2.84 a year ago. The stock sells with a price-earnings ratio of 20, which is reasonable.

"Institutional sponsorship is very good. Five-star rated Janus Mid Cap Value Fund was a recent buyer of 550,000 shares. Also, 4-star rated GMO US Quality Equity III Fund recently picked up 779,000 shares.

"Devry, based in Oakbrook Terrace, Il., is one of the largest for-profit education companies, with annual revenues of $1.1 billion. DeVry University offers undergraduate and graduate programs in business and technology fields. They account for 77% of revenue.

"Under its health-care segment, Ross University offers medical and veterinarian programs, and Chamberlain College offers nursing degrees.

"Recently acquired schools add allied health programs. Its professional segment offers review courses through its Becker CPA review and Stalla CFA review programs.

"DV's technicals set up surprisingly well. The momentum indicator is strongly bullish. Recent price action shows good institutional buying interest. However, investors should be patient with this stock; we are looking for a key breakout over 58.50 before entering.

"The company tends to show consistently good earnings growth. This fiscal year ending June 30, analysts predict a 22% increase in net to $2.18 a share from $1.78 a year ago.

"The stock sells with a price-earnings ratio of 23, which is reasonable given the earnings growth rate. Looking out to fiscal 2010, the Street projects a 24% gain in net to $2.69 a share.

"The largest fund holder is 5-star rated Baron Growth Fund with a big 5.2% stake. It has held its position steady. A recent large buyer was 5-star rated Hartford Midcap Fund, which purchased 385,000 shares.

"Over the past 2 years shows, DV's stock has appreciated 120%. That easily outperformed the S&P 500 index which declined 25% over the same time. Recent price action shows good institutional buying interest.

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

"Since the market started its downturn early this year, I have avoided all financial stocks and resisted the temptation of value plays," says Dave Dyer.

In his Dave Dyer's Newsletter, he explains, "Well, it is now time to violate both of those prohibitions at once." Here, he looks at a new buy for SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, the nation's largest provider of college loans and savings programs."

"There must be some financial areas that have predictable, growing demand, willing customers who actually have low default rates, and securitization processes that do not involve the type of financial engineering that is only intended to hide risk.

"Well, there is such an area, and it even involves a product that it makes sense to finance since it will actually increase in value over time. I'm talking about student loans.