Recs

0

Career Education's Shares Dropped: What You Need to Know

By Anders Bylund | More Articles
November 3, 2011 | Comments (0)

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of for-profit trade school operator Career Education (Nasdaq: CECO  ) could use a guidance counselor after falling as far as 16.8% today on tremendous volume.

So what: This is not a good week for Career Education's shareholders. The stock was absolutely demolished yesterday on the heels of a bad earnings report, and now analyst firms Wunderlich and William Blair pile on with a pair of downgrades. All told, shares have dropped by a heart-stopping 54% in just two days.

Now what: You know it's bad when analysts see less value in your stock after a sudden 48% plunge. Curiously, investors haven't seen any need to learn any lessons about the industry from this collapse: Strayer Education (Nasdaq: STRA  ) , Corinthian Colleges (Nasdaq: COCO  ) , and Education Management (Nasdaq: EDMC  ) are all trading blithely sideways or even up as Career Education burns. If the industry struggles hard enough to make CEO Gary McCullough turn in his badge, I'd expect the dominoes to start falling soon enough. Keep a close -- and wary -- eye on this sector, Fool.

Interested in more info about Career Education? Click here to add it to My Watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

DocumentId: 1583367, ~/Articles/ArticleHandler.aspx, 5/26/2012 11:37:27 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/25/2012 4:00 PM
CECO $7.03 Up +0.72 +11.41%
Career Education C… CAPS Rating: ***
STRA $89.40 Up +3.15 +3.65%
Strayer Education CAPS Rating: **
EDMC $8.87 Up +0.76 +9.37%
Education Mgmt CAPS Rating: *
COCO $2.82 Up +0.26 +10.16%
Corinthian College… CAPS Rating: **

Advertisement