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 educators are getting slaughtered in early trading, after industry bellwether Apollo Group
So what: Apollo's 25% plunge leads the sector bloodbath, with ITT Educational
Now what: Naturally, today's news casts even more doubts about the industry's future. It's no secret that for-profit educators have been facing intense scrutiny about just how effectively they prep students for the job market, but Apollo's announcement shows just how real those regulatory risks are becoming. With the Department of Education pushing for rules that could restrict their program offerings, as well as access to financial aid, for-profit school stocks are about the last turnaround bets I'd consider making.
Interested in more info on Apollo? Add it to your watchlist here by clicking here.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.