Apollo group is getting hammered today due to its announcement of the SEC inquiry yesterday. I would have to agree with JPM & Piper Jaffray’s view on this and believe the market is once again over reacting to EDU news… Their EPS & Enrollment are above expectations & their retention has continued to improve. In addition they seem to be closer to finally resolving the Qui Tam case. Unfortunately (except to those who are buying) it looks like the panic is setting in again. If it proves to be anything I would doubt it to be is a significant.
Apollo & their Cohort Default Issue
January 29, 2009 By 2 Comments
Much has been said over the last week regarding apollo and the manner in which they deal with their drops.
A complaint alleges that with regard to students who dropped from their courses shortly after enrolling, University of Phoenix improperly returned the entire amount of the students’ federal loan funds to the lender. Therfore improperly inflating their default rate.
While I disagree with the practice, I do not believe its a door closer… and it’s not another EVCI
others however are much more bearish.
By far the most bearish viewpoint are:
and
Seeking alpha: http://seekingalpha.com/article/114648-apollo-group-s-strong-earnings-are-misleading
What do you think?