Posts Tagged ‘APOL’
MAKING MONEY FROM OBAMA SPEECH: (SPY),(QQQ),(VMC),(MLM),(MBI),(MWW),
Barack Obama in an attempt to reinvigorate his presidency and the economy has presented to the congress a jobs plan. The $450 billion price tag is larger-than-expected.
The plan proposes to reduce payroll tax paid by employees to 3.1% in 2012 from the 4.2% level temporarily introduced this year. As it stands now, without this plan, this tax would revert to its traditional rate of 6.2%.
The plan will also reduce the payroll tax paid by the employers from 6.2% to 3.1%, with a limit of the first $5m of wages. Further employers hiring new workers or increased salaries will be exempt from payroll taxes on the higher payroll.
The plan also calls for the establishment of an infrastructure bank funded with $80bn.
The plan also proposes finding ways to help homeowners take advantage of low mortgage rates.
As my long time readers know the point of my articles is to help readers make money. As always, I will refrain from making comments that have no bearing on generating profits. Here is my plan to make money from his speech:
The plan has a very heavy emphasis on tax cuts. This portion of the plan is likely to pass the Congress. Consider buying Monster Worldwide (MWW), LinkedIn (LNKD), Automatic Data Processing (ADP), and Paychex (PAYX).
Proper timing of the purchases can make a big difference in the profits that are ultimately realized. Please consider using a proven method such as ZYX Change Method to time the purchases. I will provide buy signals in real time on the Real Time Feed of the ZYX Buy Change Alert. Read more….
APOLLO GROUP (APOL) IS ON OUR RADAR
Apollo Group (APOL) is one of the largest for-profit education companies.
To be included in On Our Radar Alerts, a stock has to meet at least four of the six screens of the ZYX Change Method. A further requirement is that the probability of the other two screens being met is high.
Apollo Group reported earnings yesterday after the close. After updating the earnings data now Apollo Group meets four screens.
Apollo Group reported $1.51 vs consensus of $1.33. Apollo Group guided revenue of $4.65 billion to $4.75 billion for 2011 vs consensus of $4.67 billion.
There are two fundamental factors to understand in Apollo Group. First, Apollo Group guided revenue for 2012 in the range of $4. to $4.2 billion. Our readers will notice that this is a big decrease from 2011 revenues. The important point is that our expectations for 2012 revenues have been under $4 billion…read more.
To read rest of the analysis and the conclusion please see the Real Time Feed of the ZYX Buy Change Alert.
MORE ON APOLLO (APOL)
Yesterday, we wrote that a number of education stocks are likely to see their multiples expand. Further analysis of the impact of new regulations show that Apollo (APOL) is the best positioned company to benefit from the new regulations.
Apollo may run to mid $50′s. However, we are not issuing a buy signal at this point and will wait for a pull back. When all six screens of the ZYX Change Method are satisfied, we will issue a buy signal on the Real Time Feed on the ZYX Buy Change Alert.
EDUCATION STOCKS: APOLLO (APOL), CORINTHIAN COLLEGES (COCO), CAREER EDUCATION (CECO), DEVRY (DV), AND ITT EDUCATIONAL SERVICES (ESI)
Apollo Group (APOL), Corinthian Colleges (COCO), Career Education (CECO,) DeVry (DV), and ITT Educational Services (ESI) are higher today on the Department of Education rules being less onerous than expected. The companies also get more time to comply with the rules.
In the near term, PE multiples are likely to expand. Further in several of these stocks, there is very high short interest that may lead to short squeezes.
When all six screens of the ZYX Change Method are met, actionable signals will be provided on the Real Time Feed of the ZYX Buy Change Alert.


