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 educator American Public Education
So what: American Public managed to post a 20% increase in its fourth-quarter student starts and said it expects a 25% jump in the current quarter. Other for-profit educators, like Strayer
Now what: I'd be cautious about chasing after this rally. The shares are now up about 70% over the past six months and trade at a P/E of roughly 27. Today's results certainly bode well for American Public, but with plenty of uncertainty still surrounding the for-profit education space, Mr. Market might be baking too much optimism into the price.
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