24/7 Wall St. » COCO

Top Analyst Upgrades and Downgrades (ABBV, AKAM, BBRY, COCO, DV, GOOG, HLF, JNJ, JCP, MCP, NOK, PFE, SLW, SYK, TE, VCLK, V)

Jon C. Ogg — Thu, 07 Feb 2013 13:20:40 +0000

These are some of this Thursday’s top analyst upgrades, downgrades and initiations seen from Wall St. research calls.

AbbVie Inc. (NYSE: ABBV) started as Neutral at Credit Suisse.

Akamai Technologies Inc. (NASDAQ: AKAM) cut to Hold at Jefferies and cut to Neutral at Janney.

BlackBerry (NASDAQ: BBRY) raised to Outperform at Wells Fargo.

Corinthian Colleges Inc. (NASDAQ: COCO) named Bear of the Day as the shift in for-profit education landscape continues to impact it at Zacks.

DeVry Inc. (NYSE: DV) raised to Neutral at J.P. Morgan.

Google Inc. (NASDAQ: GOOG) started as Neutral at Stern Agee (late-Wednesday call).

Herbalife Ltd. (NYSE: HLF) named Bull of the Day as mother of all short squeezes at Zacks.

Johnson & Johnson (NYSE: JNJ) cut to Underperform but raised target to $73 at Credit Suisse.

J.C. Penney Co. Inc. (NYSE: JCP) reiterated Buy with $35 target as multiyear turnaround story at Argus.

Molycorp Inc. (NYSE: MCP) raised to Neutral from Underweight at J.P. Morgan.

Nokia Corp. (NYSE: NOK) reiterated Hold at Argus and noted, “Nokia, though no longer on the brink of catastrophe, is still in a fierce fight with Android, iOS, and newly renamed Blackberry.”

Pfizer Inc. (NYSE: PFE) started as Neutral at Credit Suisse.

Silver Wheaton Corp. (NYSE: SLW) raised to Outperform with $49 price target at Credit Suisse.

Stryker Corp. (NYSE: SYK) cut to Neutral at Credit Suisse.

TECO Energy Inc. (NYSE: TE) cut to Hold at Argus.

ValueClick Inc. (NASDAQ: VCLK) started as Buy at Goldman Sachs.

Visa Inc. (NYSE: V) cut to Market Perform at Wells Fargo.

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ABBV, AKAM, BBRY, COCO, DV, GOOG, HLF, JCP, JNJ, MCP, NOK, PFE, SLW, SYK, TE, V, VCLK

24/7 Wall St. Closing Bell — October 31, 2012: Markets Open Higher Only to Flatten Out (RVBD, S, UBS, D, VLO, BUD, MT, CAM, CNH, COCO, CMI, ETN, H, MA, PSX, CLX, WM, ALL, CZR, HTZ, MUR, APA, CVC, EXC, XOM, HCA, RGLD, F, WRC, PVH, WU)

Paul Ausick — Wed, 31 Oct 2012 20:42:39 +0000

U.S. equity markets re-opened for business in New York this morning after a two-day shutdown forced by Hurricane Sandy. Markets opened higher, but lost their energy by mid-morning. Asian markets were higher on some decent earnings reports out of China and other mixed data reports. In Europe, consumer confidence hit a six-month low in the U.K. and Europe’s unemployment ticked back up to 11.6% (more coverage here). Eurozone members continue to wrestle with the Greek debacle following worse-than-expected estimates on that country’s debt forecast. In the U.S., mortgage applications fell and interest rates ticked back up (more coverage here) and the quarterly report on U.S. employment costs was largely inline with expectations and mostly ignored (more coverage here).

The U.S. dollar index fell today, now down 0.04% at 79.901. The GSCI commodity index is down less than 0.1% at 635.79, with commodities prices mixed again today. WTI crude oil is up about xx% in electronic trading today, at $86.24 a barrel. Brent crude trades down 0.5% at $108.55 a barrel. Natural gas is up 0.2% today at about $3.70 per thousand cubic feet. Gold closed at $1,719.10 an ounce, up about 0.4% for the day, but down 3% for the month of October.

The unofficial closing bells put the DJIA up about 10 points to 13,096.85 (-0.08%), the NASDAQ fell nearly 11 points (-0.36%) to 2,977.23, and the S&P 500 rose 0.01% or less than 1 point to 1,412.15.

There were several analyst upgrades and downgrades today, including Riverbed Technology Inc. (NASDAQ: RVBD) cut to ‘neutral’ at Baird; Sprint Nextel Corp. (NYSE: S) reiterated as ‘buy’ with a target price of $7.50 at Argus; UBS AG (NYSE: UBS) was added to the ‘Conviction Buy List’ at Goldman Sachs; Dominion Resources Inc. (NYSE: D) raised to ‘buy’ at Argus; and Valero Energy Corp. (NYSE: VLO) reiterated as ‘buy’ with a target price of $39 at BofA/ML.

Earnings reports since last night resulted in some price moves today, including these as of the last half hour of trading: Anheuser Busch InBev SA (NYSE: BUD) is down 1.7% at $83.79; ArcelorMittal (NYSE: MT) is down 4.2% at $14.80; Cameron International Corp. (NYSE: CAM) is down 2.6% at $49.92; CNH Global NV (NYSE: CNH) is up 4.5% at $44.79; Corinthian Colleges Inc. (NASDAQ: COCO) is up 8.6% at $2.65; Cummins Inc. (NYSE: CMI) is down 0.3% at $93.56; Eaton Corp. (NYSE: ETN) is up 4.4% at $47.12; Hyatt Hotels Corp. (NYSE: H) is down 4.1% at $36.49; MasterCard Inc. (NYSE: MA) is up 2.1% at $462.65 (more coverage here); Phillips 66 (NYSE: PSX) is down 0.6% at $47.23 (more coverage here); The Clorox Co. (NYSE: CLX) is up 0.3% at $72.30; and Waste Management Inc. (NYSE: WM) is up 0.9% at $32.83.

Before markets open tomorrow we are scheduled to hear from Allstate Corp. (NYSE: ALL), Ceasars Entertainment Corp. (NASDAQ: CZR), Hertz Global Holdings Inc. (NYSE: HTZ), Murphy Oil Corp. (NYSE: MUR), Apache Corp. (NYSE: APA), Cablevision Systems Corp. (NYSE: CVC), Exelon Corp. (NYSE: EXC), Exxon Mobil Corp. (NYSE: XOM), HCA Holdings Inc. (NYSE: HCA), and Royal Gold Inc. (NYSE: RGLD).

Some standouts from today include the following stocks:

Ford Motor Co. (NYSE: F) is up 7.9% at $11.13. The U.S. carmaker hammered third-quarter estimates this morning. More coverage here.

The Western Union Co. (NYSE: WU) is down 28.7% at $12.79 after posting a new 52-week low of $12.48 earlier today. The money and payment services company lowered its fiscal year outlook and investors hit the firm’s stock hard.

The Warnaco Group Inc. (NYSE: WRC) is up 38.5% at $70.48, after posting a new 52-week high of $71.41 earlier today. The apparel maker has agreed to a $2.9 billion acquisition by PVH Corp. (NYSE: PVH). More coverage here.

Stay tuned for Thursday. Boston Fed President Eric Rosengren and Atlanta Fed President Dennis Lockhart are scheduled to give speeches. We have noted the following events on the schedule (all times Eastern):

7:30 a.m. – Challenger job cut report
8:15 a.m. – ADP employment report
8:30 a.m. – New claims for unemployment benefits
8:30 a.m. – Productivity and costs
8:58 a.m. – PMI manufacturing index
10:00 a.m. – Institute for Supply Management manufacturing index
10:00 a.m. – Conference Board consumer confidence
10:00 a.m. – Construction spending
10:30 a.m. – EIA weekly petroleum status report
10:30 a.m. – EIA weekly natural gas storage report
4:30 p.m. – Fed balance sheet and money supply.

Happy Halloween!

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ALL, APA, BUD, CAM, CLX, CMI, CNH, COCO, CVC, CZR, D, ETN, EXC, F, H, HCA, HTZ, MA, MT, MUR, PSX, PVH, RGLD, RVBD, S, UBS, VLO, WM, WRC, WU, XOM

24/7 Wall St. Closing Bell — October 30, 2012: Markets to Re-open Tomorrow (ACI, MPC, LAD, IDTI, BPL, AGN, ADM, CAR, AVP, BP, JCI, F, JDSU, STX, YNDX, BUD, MT, CNH, COCO, CMII, ETN, H, MA, PSX, CLX, WM, BP, BIDU, UBS)

Paul Ausick — Tue, 30 Oct 2012 20:00:42 +0000

U.S. stock markets were closed again today as New York City recovered from the damage brought on by Hurricane Sandy. In New York, both Nasdaq and the NYSE announced that the markets would be open tomorrow, which is good news for traders who want or need to close positions at month’s end (more coverage here). Bond trading will also resume a normal schedule tomorrow. In Asia, the Bank of Japan’s ninth easing operation lifted markets (more coverage here). European markets also traded higher today, following a not-as-bad-as-expected GDP report from Spain (more coverage here).

The U.S. dollar index fell today, now down 0.37% at 79.938. The GSCI commodity index is down less than 0.1% at 636.39, with commodities prices mixed today. WTI crude oil is up about 0.2% in electronic trading today, at $85.68 a barrel. Brent crude trades down 0.46% at $108.94 a barrel. Natural gas is down 2.8% today at about $3.70 per thousand cubic feet. Gold closed at $1,710.30 an ounce, up about 0.1% for the day.

There were several analyst upgrades and downgrades today, including Arch Coal Inc. (NYSE: ACI) cut to ‘sell’ at CRT Capital; Marathon Petroleum Corp. (NYSE: MPC) maintained as ‘outperform’ and named ‘Bull of the Day’ at Zacks; Lithia Motors Inc. (NYSE: LAD) named ‘Value Stock of the Day’ at Zacks; Integrated Device Technology Inc. (NASDAQ: IDTI) maintained as ‘buy’ and target price cut to $6.50 at Canaccord Genuity; and Buckeye Partners L.P. (NYSE: BPL) cut to ‘neutral’ and named ‘Bear of the Day’ at Zacks.

There were several earnings reports today although, of course, there was no impact on share prices: Allergan Inc. (NYSE: AGN), Archer Daniels Midland Co. (NYSE: ADM), Avis Budget Group Inc. (NYSE: CAR), Avon Products Inc. (NYSE: AVP), Johnson Controls Inc. (NYSE: JCI), Ford Motor Co. (NYSE: F) (more coverage here), JDS Uniphase Corp. (NASDAQ: JDSU), Seagate Technology plc (NASDAQ: STX), and Yandex NV (NASDAQ: YNDX).

Before markets open tomorrow we are scheduled to hear from Anheuser-Busch InBev SA (NYSE: BUD), ArcelorMittal (NYSE: MT), Cameron International Corp. (NYSE: CAM), CNH Global NV (NYSE: CNH), Corinthian Colleges Inc. (NASDAQ: COCO), Cummins Inc. (NYSE: CMI), Eaton Corp. (NYSE: ETN), Hyatt Hotels Corp. (NYSE: H), MasterCard Inc. (NYSE: MA), Phillips 66 (NYSE: PSX), The Clorox Co. (NYSE: CLX), and Waste Management Inc. (NYSE: WM).

Major stories from today include:

BP plc (NYSE: BP) rose more than 4% in London trading today. The oil & gas giant increased its dividend today after reporting better-than-expected results. More coverage here.

Baidu Inc. (NASDAQ: BIDU) reported earnings that beat expectations, but revenues fell a bit short. More coverage here.

UBS AG (NYSE: UBS) officially announced a layoff of 10,000 workers today, primarily in its fixed income business. More coverage here.

Stay tuned for Wednesday. San Francisco Fed President John Williams is scheduled to give a speech in New York tomorrow. We have noted the following event on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
8:30 a.m. – Employment cost index
9:45 a.m. – Chicago PMI
3:00 p.m. – Farm prices

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ACI, ADM, AGN, AVP, BIDU, BP, BPL, BUD, CAR, CLX, CMII, CNH, COCO, ETN, F, H, IDTI, JCI, JDSU, LAD, MA, MPC, MT, PSX, STX, UBS, WM, YNDX

For-profit Colleges Struggle (APOL, DV, STRA, COCO, LOPE)

Paul Ausick — Wed, 17 Oct 2012 15:18:11 +0000

After markets closed last night, Apollo Group Inc. (NASDAQ: APOL), which owns and operates the University of Phoenix, reported a better-than-expected earnings per share (EPS) of $0.52, but revenues fell 11% compared with the same period a year ago. The worse news, though, was still to come.

Apollo and other for-profit schools like DeVry Inc. (NYSE: DV), Strayer Education Inc. (NASDAQ: STRA), and Corinthian Colleges Inc. (NASDAQ: COCO) have all struggled with recent federal restrictions on recruitment and student loan requirements. Grand Canyon Education Inc. (NASDAQ: LOPE) has managed to prosper in the new environment by keeping its tuition costs low and attracting more students to online programs.

Apollo announced that it will close 115 of its locations, including 25 campuses and 110 learning centers, a move that will affect about 13,000 students. That will leave the school with 112 locations. The University of Phoenix claims 328,000 students enrolled in degree programs, and new student enrollments in the quarter of 52,800. Both represent double-digit declines from a year ago.

For these schools, the still-high unemployment rates stunt enrollments because there are so few prospects after the course of study is completed. Job prospects have not been much better for college graduates of traditional non-profit schools, but the outlook is improving somewhat for 2013 graduates according to the National Association of Colleges and Employers (NACE).

Grand Canyon Colleges has managed to avoid the carnage by limiting its physical presence to one location and enrolling more students in online classes. The school, a Christian liberal arts university, has also kept its tuition lower than tuition at local state schools in Arizona. These advantages may begin to evaporate as state and private non-profit colleges expand online offerings.

Today, though, the for-profit schools are getting hammered. Apollo’s shares are down 17.7% at $22.62 after posting a new 52-week low of $22.50. The prior 52-week range was $25.77 to $58.29.

DeVry shares are down 3% at $22.51 in a 52-week range of $18.15 to $46.92.

Strayer’s shares are down 5.8% at $65.66 in a 52-week range of $62.53 to $100.00.

Corinthian Colleges’ shares are off 4.9% at $2.53 in a 52-week range of $1.69 to $5.21.

Shares of Grand Canyon are also down, about 1.5% at $23.00 in a 52-week range of $14.12 to $24.41.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Earnings, Services Tagged: APOL, COCO, DV, LOPE, STRA

24/7 Wall St. Closing Bell — August 20, 2012: Markets Uninspired Again (SCCO, BRCD, AZN, ROST, BEBE, LOW, COCO, URBN, BBY, TECD, BKS, ADI, DELL, MDT, VLO, CVH, AET, LDK)

Paul Ausick — Mon, 20 Aug 2012 20:06:31 +0000

The three major US stock indexes opened lower this morning following a negative reaction by a government official to a weekend report that Germany would support a sovereign bond-buying plan for the European Central Bank (our coverage here). In Asia, expectations have risen that the central bank will not make any near-term change in interest rates. Additional restrictions on property lending are also rumored. There was no data of note released today, so rumors ruled as the empire dozed.

The US dollar index fell today, now down 0.15% at 82.469. The GSCI commodity index is essentially flat today at 667.56, with commodities prices mostly higher. WTI crude oil finished nearly flat as well today, closing down just $0.04 at $95.97/barrel. Brent crude trades down 0.29% at $113.38/barrel. Natural gas is up 2.2% today to $2.78/thousand cubic feet. Gold settled at $1,623.00/ounce, up 0.2%.

The unofficial closing bells put the DJIA down nearly 4 points to 13,271.64 (0.03%), the NASDAQ fell less than 1 point (0.01%) to 3,076.21, and the S&P 500 closed flat at 1,418.12.

There were several analyst upgrades and downgrades today, including Southern Copper Corp. (NYSE: SCCO) started as ‘outperform’ at Credit Suisse; Brocade Communications Systems Inc. (NASDAQ: BRCD) reiterated as ‘hold’ at Argus; AstraZeneca PLC (NYSE: AZN) cut to ‘underweight’ at JPMorgan; Ross Stores Inc. (NASDAQ: ROST) raised to ‘buy’ at BofA/ML; and Bebe Stores Inc. (NASDAQ: BEBE) cut to ‘neutral’ at Janney.

Earnings reports since markets closed last last Friday have led to some price changes as of the last half hour of trading today: Lowe’s Companies Inc. (NYSE: LOW) is down 6.3% at $26.10 (more coverage here) and Corinthian Colleges Inc. (NASDAQ: COCO) is down 4% at $2.35 (more coverage here).

Earnings releases have slowed way down, but reports scheduled for Tuesday include Urban Outfitters Inc. (NASDAQ: URBN), Best Buy Co. Inc. (NYSE: BBY), Tech Data Corp. (NASDAQ: TECD), Barnes & Noble Inc. (NYSE: BKS), Analog Devices Inc. (NASDAQ: ADI), Dell Inc. (NASDAQ: DELL), and Medtronic Inc. (NYSE: MDT) (more details here).

Some standouts from today include the following stocks:

Valero Energy Corp. (NYSE: VLO) is up 3% at $29.65, after setting a new 52-week high of $29.78 earlier today. The oil refiner got a bit of a boost from reports that ethanol stocks are being consumed. Even though ethanol makers are losing money on every gallon, the cattle feed by-product continues to provide margin of about $0.12/gallon. Refiner’s stocks are rising now, but that could change quickly as crude prices rise.

Coventry Health Care Inc. (NYSE: CVH) is up 19.6% at $41.80 after posting a new 52-week high of $41.90 earlier today. The health-care provider is being acquired by Aetna Inc. (NYSE: AET) for $5.7 billion in cash and stock. More coverage here.

LDK Solar Co. Ltd. (NYSE: LDK) is up 12.7% at $1.51. The solar PV module maker is leading a number of Chinese solar makers higher today, primarily on the strength of a government finding that the US government has unfairly funded several green energy projects in Ohio and other states. The belief is that US-suppliers will get booted from the contracts and be replaced by China’s own solar makers.

Stay tuned for Tuesday. Atlanta Fed President Dennis Lockhart is giving a speech.We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – ICSC-Goldman store sales
11:30 a.m. – 4- and 52-week bill auctions

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADI, AET, AZN, BBY, BEBE, BKS, BRCD, COCO, CVH, DELL, LDK, LOW, MDT, ROST, SCCO, TECD, URBN, VLO

Corinthian Colleges Sinks on Enrollment Forecast (COCO, APOL, STRA, LOPE, EDMC, APEI)

Paul Ausick — Mon, 20 Aug 2012 16:49:07 +0000

Corinthian Colleges Inc. (NASDAQ: COCO) reported a fourth fiscal quarter EPS loss of $0.08 and $394.78 million in sales before markets opened this morning. In the same period a year ago, the for-profit schools reported EPS of $0.04 on revenue of $396.84 million. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.11 and $403.23 billion in revenue.

The company posted a net loss of $6.5 million mostly as the result of one-time charges for discontinued operations. On an adjusted basis, the company posted quarterly EPS of $0.10.

The company’s chairman/CEO said:

Fiscal 2012 was a year of progress against a backdrop of adapting to regulatory change. We continued to focus on student completion and achieved a slight increase in our graduate placement rate despite a weak economy.

Corinthian offered first fiscal quarter guidance for EPS of $0.03-$0.05 on revenue of $395-$405 million. Enrollment is forecast as essentially flat, at up or down 1%. The consensus estimate for the quarter called for EPS of $0.04 on revenue of $407 million.

But as with rivals Apollo Group Inc. (NASDAQ: APOL), Strayer Education Inc. (NASDAQ: STRA), Grand Canyon Education Inc. (NASDAQ: LOPE), Education Management Corp. (NASDAQ: EDMC), and American Public Education Inc. (NASDAQ: APEI) growth may be a thing of the past. A new regulatory environment limits the amount of federal funds to 90% of a school’s total revenue and imposes new guidelines on employment for graduates.

To compensate for flat enrollments and federal funding cuts, schools are cutting expenses, with some making large cuts in educational services. Corinthian, for example, shaved over $13 million from its educational services costs in the fourth quarter, though marketing and admissions costs were up nearly $5 million.

Corinthian’s shares are down nearly 9.5% at $2.22. The current 52-week range is $1.24-$5.21. Thomson Reuters had a consensus analyst price target of $3.54 before today’s results were announced.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Earnings Tagged: APEI, APOL, COCO, EDMC, featured, LOPE, STRA

24/7 Wall St. Closing Bell — August 17, 2012: Markets Up on Light Volume, Little Enthusiasm (GRPN, PSX, WLP, GTAT, KKD, ARO, CRMT, BRCD, GPS, MRVL, ANN, FL, SJM, COCO, LOW, URBN, BBY, TECD, WTSLA, CHS, HPQ, KYAK, ADSK, BIG, CKP)

Paul Ausick — Fri, 17 Aug 2012 20:04:10 +0000

The three major US stock indexes opened higher this morning after the news that German chancellor Angela Merkel said Germany would support European Central Bank sovereign bond buying. Unfortunately she doesn’t have the last word on this (our coverage here). Other data out of Europe was also positive. In Asia, hope still abounds that China will lower its reserve ratio, freeing up more cash for banks to lend. Today’s report on US consumer sentiment exceeded expectations (our coverage here). The Conference Board’s report on leading economic indicators also beat expectations (more coverage here).

The US dollar index rose today, now up 0.3% at 82.605. The GSCI commodity index rose 0.8% to 667.57, with commodities prices mostly higher today. WTI crude oil finished up 0.4% today, closing at $96.01/barrel, up 3.4% for the week. Brent crude trades down 1.33% at $113.74/barrel. Natural gas is down fractionally today to $2.722/thousand cubic feet. Gold settled at $1,619.40/ounce, up fractionally and down 0.2% for the week. Platinum added 2.5% to close at $1,473/ounce, up more than 5% for the week, following violence at a major South African mine (our coverage here).

The unofficial closing bells put the DJIA up more than 25 points to 13,275.28 (0.19%), the NASDAQ rose more than 14 points (0.46%) to 3,076.59, and the S&P 500 rose 0.19% or nearly 3 points to 1,418.15.

There were several analyst upgrades and downgrades today, including Groupon Inc. (NASDAQ: GRPN) cut to ‘underweight’ at Evercore; Phillips 66 (NYSE: PSX) started as ‘overweight’ at JPMorgan; Wellpoint Inc. (NYSE: WLP) cut to ‘equal weight’ at Morgan Stanley; GT Advanced Technologies Inc. (NASDAQ: GTAT) raised to ‘buy’ at Canaccord Genuity; and Krispy Kreme Doughnuts Inc. (NYSE: KKD) started as ‘outperform’ at Wedbush Morgan.

Earnings reports since markets closed last last night have led to some price changes as of the last half hour of trading today: Aeropostale Inc. (NYSE: ARO) is down 11.1% at $12.15; America’s Car-Mart Inc. (NASDAQ: CRMT) is down 5.5% at $45.93; Brocade Communications Systems Inc. (NASDAQ: BRCD) is up 2.1% at $5.75; Gap Inc. (NYSE: GPS) is up 5% at $36.06 after posting a new 52-week high of $36.22 earlier today; Foot Locker Inc. (NYSE: FL) is up 2% at $35.18 after posting a new 52-week high of $37.98 earlier today; and J.M. Smucker Co. (NYSE: SJM) is up 5.2% at $83.09 after posting a new 52-week high of $84.10 earlier today.

Earnings releases are slowing down, but reports scheduled before Monday’s open include Corinthian Colleges Inc. (NASDAQ: COCO) and Lowe’s Companies Inc. (NYSE: LOW). Later in the week we expect to hear from Urban Outfitters Inc. (NASDAQ: URBN), Best Buy Co. Inc. (NYSE: BBY), Tech Data Corp. (NASDAQ: TECD), Wet Seal Inc. (NASDAQ: WTSLA), Chico’s FAS Inc. (NYSE: CHS), Hewlett-Packard Co. (NYSE: HPQ), Kayak Software Corp. (NASDAQ: KYAK), Krispy Kreme Doughnuts Inc. (NYSE: KKD), Autodesk Inc. (NASDAQ: ADSK), and Big Lots Inc. (NYSE: BIG).

Some standouts from today include the following stocks:

Checkpoint Systems Inc. (NYSE: CKP) is up 20.1% at $8.54. The retail security and solutions company had no news today, but one analyst has suggested the company as a possible buyout target.

Ann Inc. (NYSE: ANN) is up 21.8% at $34.26 after posting a new 52-week high of $34.37 earlier today. The women’s clothing retailer pounded estimates this morning.

Marvell Technology Group Ltd. (NASDAQ: MRVL) is down -14.3% at $10.52. The chipmaker missed EPS and revenue estimates last night as demand from storage providers and smartphone makers weakened.

Stay tuned for Monday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – Chicago Fed national activity index
11:30 a.m. – 3- and 6-month bill auctions

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADSK, ANN, ARO, BBY, BIG, BRCD, CHS, CKP, COCO, CRMT, FL, GPS, GRPN, GTAT, HPQ, KKD, KYAK, LOW, MRVL, PSX, SJM, TECD, URBN, WLP, WTSLA

DeVry Death Spiral: How the Analysts Got It So Wrong

Jon C. Ogg — Tue, 24 Jul 2012 16:26:51 +0000

DeVry, Inc. (NYSE: DV) is topping the leaderboard today, but in the wrong direction. It is the top loser on the New York Stock Exchange. The secondary education provider issued a rather ghastly earnings warning if you look at the stock reaction. The company said that enrollment is falling and that it is firing some 570 workers as it struggles in a new regulatory environment.

The company said that enrollment for the summer term at its DeVry University is expected to fall by 15% to 17% from the 2011 term. Its earnings warning is even worse: $0.43 to $0.46 versus estimates of $0.79 EPS. What is amazing is how so many analysts just this one wrong. It was obvious that things were bad in this sector, but THIS BAD??? We have seen at least four downgrades so far this Tuesday:

Cut to Neutral from Buy at BofA-Merrill Lynch
Cut to Neutral from Buy at Citigroup
Cut to Underweight from Neutral at J.P. Morgan
Cut to Perform from Outperform at Oppenheimer

Apollo Group Inc. (NASDAQ: APOL), which owns the University of Phoenix, is down 6% at $27.18 at a new 52-week low. Corinthian Colleges Inc. (NASDAQ: COCO) is down 4.4% at $2.34 but that is nowhere close to a 52-week low. Strayer Education Inc. (NASDAQ: STRA) is down 8% at $93.44.

DeVry shares are not just at a 52-week low. They are at multi-year lows. After a 24% drop to $20.85, its prior 52-week range was $26.13 to $66.08. DeVry shares are now trading at less than half the price from the peak of selling in early 2009 during the height of the recession.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Earnings, Earnings Warning, Entertainment, Media, Personal Finance Tagged: APOL, COCO, DVY, STRA

For-profit College Denied Accreditation

Paul Ausick — Mon, 09 Jul 2012 16:34:47 +0000

Ashford University, a unit of Bridgepoint Education Inc. (NYSE: BPI), has been denied its initial accreditation by the Western Association of Schools and Colleges (WASC), an action that could force the school to close. A closure is a fair distance away, given that the school plans both to appeal the decision and to re-apply for accreditation.

And while the decision is specific to Bridgepoint’s Ashford University, other for-profit schools are seeing shares fall as well today. Career Education Corp. (NASDAQ: CECO) is off the most, down -6.4% at $6.43 in a 52-week range of $5.32-$25.26.

Apollo Group Inc. (NASDAQ: APOL) is off -3% at $35.21, Corinthian Colleges Inc. (NASDAQ: COCO) is down -2.7% at $3.05, and DeVry Inc. (NYSE: DV) is off -2.4% at $30.74.

ITT Educational Services Inc. (NYSE: ESI) is off -2% and Strayer Education Inc. (NASDAQ: STRA) is down -1.4%.

In order to qualify for federal funds, colleges must be accredited. For-profit schools depend on student fees — some 90% of which are paid with federal grants and guaranteed student loans — for the lion’s share of their revenues. The loss or denial of accreditation could well be a death knell for a for-profit institution.

Ashford is currently accredited by the Higher Learning Commission of the North Central Association of Schools and Colleges through the 2014-2015 school year. But this accrediting body is also bearing down on Ashford, telling the school that “it has until December 1, 2012, to demonstrate compliance with HLC’s ‘substantial presence’ requirement.” Ashford had intended to gain accreditation from WASC because a substantial portion of the school’s activities to support its online programs are based in the WASC accrediting region.

Bridgepoint’s stock is down -23% at $16.57 after posting a new 52-week low this morning of $14.25. The previous 52-week range was $16.01-$30.62.

Paul Ausick

Filed under: General Tagged: APOL, BPI, CECO, COCO, DV, ESI, STRA

For-Profit Education Marketing Proposal Risks Grow

Jon C. Ogg — Tue, 12 Jun 2012 19:17:09 +0000

There are some new concerns over the for-profit education market. Reports were out earlier in 2012 that Senator Harkin was attacking the for-profit education companies in a new round of attacks by targeting the ability of for-profit educators to market themselves. News was out in April that Harkin and another Democrat would propose a ban against for-profit schools using revenue from federal financial aid for advertising, marketing and recruitment.

There has been chatter today that this Harkin proposal may actually turn into legislation. Herb Greenberg tweeted this earlier as some of these stocks are being hit today. What is interesting is that any further legislation is not likely to gain much support today. Still, it is an election year and any change-in-control of the House of Senate could change the future of the for-profit education sector.

Here is how the shares of some of the for-profit players are faring today:

Apollo Group Inc. (NASDAQ: APOL) is down 3.4% at $33.13 against a 52-week range of $30.93 to $58.29.
Career Education Corp. (NASDAQ: CECO) is down 3.2% at $6.09 aginst a 52-week range of $5.88 to $25.26.
DeVry, Inc. (NYSE: DV) is down 3.4% at $27.33 against a 52-week range of $26.13 to $66.85.
Strayer Education Inc. (NASDAQ: STRA), which has its deal with Jack Welch, is down 3.4% at $86.95.
Corinthian Colleges Inc. (NASDAQ: COCO) is down only 1.5% at $2.58 and its 52-week range is $1.24 to $5.21.
Education Management Corporation (NASDAQ: EDMC) is down 2% at $6.61 and is at a year low as the prior 52-week range was $6.70 to $29.90.
ITT Educational Services Inc. (NYSE: ESI) is down 1% at $54.31 against a 52-week range of $50.22 to $95.52.

This sector has been under fire for years now and 2012 has not been kind to these stocks. By proposing to limit the ability of these institutions’ marketing and recruiting efforts, you could make the case that it looks and feels like some of the same limitations as those of tobacco companies and their marketing efforts. The comparison is of course extreme, and for-profit education outfits do not pay the same in federal and local taxes compared to the tobacco companies. It is safe to say “Smoking kills.” Is the same true of for-profit education companies?

JON C. OGG

Filed under: Accounting, Consumer Goods, Consumer Product, Entertainment, Media, Politics, Tobacco Tagged: APOL, CECO, COCO, DV, EDMC, ESI, STRA