Shares are Down
Dr. Bill Belew
Issue III - June 25, 2006
Introduction by Mr. Stolyarov:
Although the stock of many for-profit educational corporations has
slightly declined recently, the quality of education they provide has
not, writes Dr. Belew. Besides, this is no grounds on asserting
for-profit services' educational inferiority to traditional colleges,
because traditional colleges refuse to operate on a for-profit basis on
principle; the financial data of the two types of schools thus cannot be
Apollo Group is the biggest of the ForPro education groups. It owns
the University of Phoenix.
Yesterday its stock fell 2 percent after reporting lower
third-quarter profits because of higher costs.
Corinthian Colleges is another of the big players. It, too, reported
a loss of 3 cents/share.
DeVry lost 15 cents, and Educational Services lost 3 cents/share as
Everybody's trading down, albeit down very little.
Does this mean that the quality of education provided by these groups
has also dipped? Are students losing out 2% on their classes? or 3
cents/dollar they spend on their tuition?
One of the big five -- Career Education Corporation -- reported gains
of 2 percent. I reckon if they were all averaged out, it kind of breaks
Question: How did the traditional colleges do this last quarter?
Hmmm.... Nobody knows or will know until they come asking for money.
What do you think?
Dr. Bill Belew is a former Intelligence
Officer for a Destroyer Squadron. He lived 20 years in Japan, where he
started a language school for Japanese
Dr. Belew teaches classes for a vocational school and online for a
See Dr. Belew's blog,
for news and discussions about business and current events in Russia and
for Dr. Belew's reports on business in China,
on business in Japan, and
TheBizofKnowledge on business education.
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