Tuesday, January 11, 2011

Why the For-Profits are taking a hit

The press seems to be failing to put the two-and-two together. New enrollments at the University of Phoenix has dropped by nearly 42% . Likewise, Strayer has seen a drop of around 22%.  Naturally, that means that their stocks aren't doing too well. It's with even more delight to report that other for-profits have taken a hit. These are the most notable.

Why is this happening? Well, here are two reasons: (a) Senator Harkin's hearings are taking their toll, as are (b) Robert Shireman's proposed regulations on 'gainful employment.' It's a shame that the press can't connect the dots, and can't give them any credit. But, then again, should we really expect one leg of the entertainment industry to provide us with good analysis on matters such as this? Probably not. Of course, you have your pro-business framing, but I'll save my critique of that for another day.


Unknown said...

You know I support you, but your reference about UOPX is pretty misleading. You make it sound as if their overall enrollment has fallen drastically, when it's only the new enrollees that have decreased.

Cryn Johannsen said...

Well, I wasn't trying to be misleading. Not in the least.

Cryn Johannsen said...

The error has been corrected, Peter.

Anonymous said...

Have the rip-offs known as non-profits and public schools also experienced a drop-off in enrollments?

Susan Pizzo said...

One NPR report on this subject:


Susan Pizzo

Anonymous said...

FYI - Herb Greenberg on CNBC has done a ton of coverage on the for-profit schools and how the short sellers are wagering against them.