tag:blogger.com,1999:blog-7294165939647321702.post7718505420234447464..comments2024-03-11T10:31:06.107-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: EdumacationSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7294165939647321702.post-69938160362593231972013-03-28T19:55:35.575-04:002013-03-28T19:55:35.575-04:00Hi hcv,
I am! But some of these guys are disrupto...Hi hcv,<br /><br />I am! But some of these guys are disruptors in that field. I can't tell who's going to be successful though, so diversification makes sense for that reason too.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-90228232488019666212013-03-28T13:45:11.157-04:002013-03-28T13:45:11.157-04:00I think this sector is a trap.
Yes, the numbers l...I think this sector is a trap.<br /><br />Yes, the numbers look cheap, at first glance...<br /><br />HOWEVER, a lot of these companies have leases that are going to eat them up. They are closing locations, but are still on the hook for the lease.<br /><br />They also face lawsuits from their students.<br /><br />They also face potential lawsuits from the government.<br /><br />They also face TREMENDOUS negative publicity. Certainly, that is eventually going to have a negative factor on student recruitment/retention.<br /><br />They also face acceditation issues.<br /><br />They also face problems with student loan issues. They have HUGE default rates. I am going to guess that students loans make up well over 90% of their revenue...<br /><br />Their business model does not make any sense. They get money from the government to hand out worthless degrees.<br /><br />University of Phoenix just released statistics about graduation rates. It turns out that 1% of full time students seeking a bachelor's degree graduate within 4 year. 7% graduate within 6 years, and 13% graduate within 8 years...<br /><br /><br />http://nces.ed.gov/collegenavigator/?q=university+of+phoenix&s=AZ&id=372213#retgrad<br /><br />I find it hard to believe those figures are true...<br /><br />I guess time will tell...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-9388253768562918782013-03-27T09:22:44.982-04:002013-03-27T09:22:44.982-04:00Are you concerned about online education disruptin...Are you concerned about online education disrupting this industry?hcvhttp://www.hardcorevalue.comnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-11216688714564086432013-03-27T07:24:14.667-04:002013-03-27T07:24:14.667-04:00I've thought exactly the same thing when looki...I've thought exactly the same thing when looking at individual stocks in this sector. I first noticed them when looking through the lists at magicformula investing, lots of low PEs with high historical Returns on Equity but upon further analysis just too risky.<br /><br />Seems like a sensible way to get access to the sector and spread risk though.Striverhttp://www.iwantistrive.comnoreply@blogger.com