Thursday, November 20, 2008

Edubusiness Update

Signal Hill had a great conference on education business today. They had 30 minute presentations from a lot of the for-profit entities out there looking for more money or to keep their investors happy. The for-profit side of education is actually not doing too bad when compared to other stocks in the market.

But there is concern. There is a lag time between the plummeting house price and the lower tax revenue. Districts are clamoring right now for cuts. Since the economy is getting much worse, states and districts are about to get hammered. Budget cuts are going to become slashing the budget.

On the for-profit college side, they are still humming along as well and may not get hammered as bad. The private colleges at $45K a year are going to be hurting. But people will still need the degree and these low cost, online alternatives are going to look pretty good.

All in all, education that is not tied to district funding is still looking pretty solid right now.

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