What the Market Taught Me This Week

As a member of our 10% Promise team, I see a lot of wild swings in the market. Sometimes there's an easy explanation, but sometimes the market knocks us for a loop without telling us why. Still, every week I learn something new. Here are a few things the market taught me this week.

Investor battles are fun to watch -- from the sidelines
David Einhorn and Fairholme Fund's Bruce Berkowitz are fighting over real estate developer St. Joe (NYSE: JOE), and this week, the SEC got in the middle. The commission has pledged to investigate the company's real estate impairment practices, which will hopefully determine who's on the right side of this battle. Berkowitz may have already answered that question for shareholders by ending his standstill agreement, opening the way for a larger stake in the company. BlackRock (NYSE: BLK) is also buying St. Joe's stock, so it looks like Einhorn gets the short end of this stick.

When two successful, high-profile investors do battle, it's fun to watch. But following the wrong one can lead to disaster. I would have chosen Einhorn to win this fight, so it's a good thing I stayed out of it altogether.

Online education is so 2009
Shares of education providers were mixed this week, but I couldn't overlook their dramatic drop in enrollments. Apollo Group (Nasdaq: APOL) saw enrollments fall 42%, while Strayer Education (Nasdaq: STRA) has 20% fewer students this year. The value proposition for higher education has taken a dramatic downturn since the economy hit the skids, and going back to school isn't as hip as it once was.

I went back to school a few years ago, and I know firsthand the dilemmas potential students face when considering taking the leap. Jobs and promotions are no longer a guarantee, whether you're getting a bachelor's degree, an MBA, a law degree, or a Ph.D. There are many talented, highly educated people still looking for jobs, so employers don't have the same incentive to reward that shiny new diploma you spent time and money earning.

Buses in China are a great place to invest
China MediaExpress (Nasdaq: CCME) hit our "10% pop" list for the sixth time this week, bringing this stock a step closer to catching Molycorp for the most single-day big moves since we started keeping track. The company signed more contracts and won the No. 1 spot on Forbes China's "Up-And Comers" list. Its stock has nearly doubled over the past year, yet it still sports a nice 8.5 price/earnings ratio -- extremely low for a company growing so rapidly.

When a stock hits our "popped" list more than once, it has a tendency to come back time and time again, and China MediaExpress is no different. I'm still a little cautious on Chinese stocks, which have a tendency to bring surprises when we least expect it, but momentum is on China MediaExpress's side. Bus advertising -- who knew?

It doesn't pay to delay
I assume I'll get to ride in a Boeing (NYSE: BA) 787 sometime in my life, but for now, the company is quite literally paying for the aircraft's delays. Motley Fool Hidden Gems pick Spirit AeroSystems (NYSE: SPR) settled with Boeing over the constant 787 delays, which have been a real drag on Spirit's results.

We'll know more about the settlement when Spirit releases earnings on Feb. 10. For now, investors should feel a little bit better that Spirit got something from Boeing, even if it wasn't a production order.

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