A great university, but an even better stock. Why? American Public University System (APUS), wholly owned by American Public Education, Inc. (APEI), makes a strong case for leadership in its segment by providing online programs to address critical challenges in higher education. As America faces the dual challenges of reining in crippling tuition costs while significantly increasing the number of college graduates receiving a quality education, APUS has found a business model that seems to accomplish both goals.

Continue reading APEI: A Diamond in the Rough

APEI: A Diamond in the Rough originally appeared on BloggingStocks on Fri, 18 Feb 2011 15:00:00 EST. Please see our terms for use of feeds.

Education firm Apollo Group (NASDAQ: APOL) announced third-quarter earnings after the closing bell sounded yesterday, with earnings coming in better than a year ago thanks to higher enrollment. The company raked in $201.1 million, or $1.26 per share in the latest quarter, far better than $139.1 million, 85 cents per share a year ago. Not only did the company top last year's performance, but it also bested the Street's estimate for earnings of $1.12 per share on revenue of $1.04 billion.

Enrollment at the online college grew 22% on a year-over-year basis to 420,700 in the third quarter. The company's co-CEO Chas Edelstein noted, "We are please to report a record third quarter, driven largely by continuing increases in enrollments and improved student retention at University of Phoenix." The company's selling and promotional expenses increased during the quarter, but they declined as far as a percentage of net revenue.

Continue reading Apollo Group beats the Q3 estimates -- is it poised for a breakout?

Apollo Group beats the Q3 estimates -- is it poised for a breakout? originally appeared on BloggingStocks on Tue, 30 Jun 2009 09:40:00 EST. Please see our terms for use of feeds.

I don't like to toot my horn much, as there are plenty of loud mouths in this industry ready to tell you how great they are. I prefer to let my work do the talking, and lately that work has been screaming.

I'll make an exception to the rule today. Here goes: Following my suggestions can significantly improve your performance in the market.

Case in point is my list of Top 10 Stocks for 2009. With a week of trading under our belt, the S&P 500 is down approximately 1%. The aggregate return of an equally weighted portfolio consisting of the 10 stocks on the list is nearly 9%.

Included on the list are big gainers Chicago Bridge & Iron (NYSE: CBI), up 25% year to date, and Transocean (NYSE: RIG), up 15% year to date.

Now, a week does not make a year, but keep in mind that as goes January, so goes the rest of the year. I expect these stocks to continue outperforming by a wide margin for the remainder of the year.

Continue reading Online Educator Apollo gonna keep on shining

Online Educator Apollo gonna keep on shining originally appeared on BloggingStocks on Sun, 11 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

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.

Continue reading Top Stock Picks '09: Apollo Group (APOL)

Top Stock Picks '09: Apollo Group (APOL) originally appeared on BloggingStocks on Mon, 05 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

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.

Lousy economy may benefit online education companies originally appeared on BloggingStocks on Wed, 02 Jul 2008 18:06:00 EST. Please see our terms for use of feeds.

For-profit education company Career Education Corporation (NASDAQ: CECO) seems to have put most of its ethical and regulatory problems behind it, and is now trying to repair the damage. CEO Gary McCullough insists that 3Q 2007 numbers are "positive indicators for future performance." That's good, because the current numbers are flunking.

Career Education's problem is not just a set of numbers heading in the wrong direction. Like many for-profit educational services providers, Career Education markets its programs to online students. Many online programs are cheaper to run than bricks and mortar campuses. Career Education has an increasing online enrollment, but operates online programs at a lower overall profit margin. The more online students, the lower the profit per student, therefore the bigger the decline in revenue. Online income dropped $15.3 million in 3Q 2007 alone. The drop in online income is the major factor in the YTD $200 million decline in consolidated revenue.

Career Education is currently negotiating the sale of 11 schools and campuses and has recorded a $4.3 million loss from discontinued operations as a result. The company has reduced capital expenditures by 25%, and taken steps to trim administrative, admissions and bad debt expenses. The company repurchased $150 million of its stock in 3Q 2007, part of a much larger $800 million buyback. There are a variety of for-profit educational equities capable of earning a passing grade from investors. Career Education presently is not one of them.

Career Education (CECO) not making the grade originally appeared on BloggingStocks on Wed, 14 Nov 2007 16:30:00 EST. Please see our terms for use of feeds.