Back to School Stocks Benefitting from Less Financial Regulation – Education Stocks Soar Early on Monday
Posted on | July 19, 2010 | Comments Off
With retailers picking up speed with back to school sales it looks as if back to school stocks are beginning to gain momentum as well. With less financial regulation a very strong possibility in the near future some of the common education stock names are soaring on Monday morning.
Corinthian Colleges Inc is up over 12% while Education Management Corp is up an amazing 17%. It is important to note that many of these education stocks have seen a strong pullback since the beginning of April so even a 17% gain for EDMC still puts this corporation no where near breakeven for the year. In fact, EDMC is down over 15% on the year even after the huge gain today.
For any of those who have worked in retail it probably conjures up bad memories when the words back to school are mentioned. The three letters BTS are a scary through when it comes to all the different types of pencils, erasers and notebooks. Fortunately, back to school is only one month out of the year but the unfortunate part is that Halloween is set after the second week in August.
With the financial regulatory bill signed it may be the case that back to school stocks are an investment play over the next few months but it is always smart to look at the balance sheet of these companies. Making money is very difficult and some of these colleges are finding it even harder with the unemployment rate above 9% and the economy still struggling.
Author: Jesse Wojdylo
Ask Wojdylo Column – Financial, Entertainment and Sports news with a money spin.
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