Analyst Study on Apollo Group Inc. and Corinthian Colleges Inc. -- For-Profit Educators Pushing for Easing of Proposed Regulator
December 07 2010 - 7:52AM
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Shares of for-profit educational companies such as Apollo Group
Inc. and Corinthian Colleges Inc. jumped Friday as investors
anticipated an easing of the industry related regulations currently
on the table. Speculation over the easing of regulations rose as
Secretary of Education, Arne Duncan, announced plans to meet with
members of Capitol Hill. However, there is currently no guarantee
that any changes will be made to the regulations currently being
proposed. Investors can register today at
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Inc. and Corinthian Colleges Inc.
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Detractors of for-profit educational companies argue that they
inadequately prepare students, burden them with too much debt and
have low graduation rates because of lax admission standards.
President Obama has been one of the chief proponents of passing the
proposed regulatory changes. If the changes pass, for-profit
educators could see significant revenue changes. Admission
standards would likely be adjusted and could result in a major
enrolment drop. Visit us at
http://www.wallstreetequityresearch.com/ to understand the
catalysts and forces driving or affecting companies in the
education & training services industry.
Regulatory changes could also lead to slower debt repayment
which in turn would lower profits in the short-term. An adjustment
period to regulatory reforms would be a foregone conclusion, but
the length of it, and its effect on long-term revenues, remains
unknown.
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