Two Ways: Apollo Group Schools Analysts
Strengthen your portfolio in good times and bad.
Apollo Records Second-Quarter Profit
Apollo Group (APOL) recorded a second-quarter profit yesterday due to higher enrollment. But shares fell by as much as 5.6% in after-hours trading on concerns over the private education company's bad debt expense. Apollo has had difficulty collecting payments from dropouts, a fact in attributes to the tough economic climate.
The company reported profits of $125.3 million, or $0.77 a share, compared to analysts' estimates of $0.65 a share. Revenues came in at $876.1 million versus consensus expectations of $865.5 million. Meanwhile, new enrollments at its University of Phoenix rose 20%, while new degreed enrollment rose 23%, just below 25.6% for the previous quarter. According to Dow Jones, the company said it didn't expect the surge to continue.
From the Bull Pen: Stock futures are pointing to a lower open this morning, but Research In Motion (RIMM) is grabby in green. For a trade today, consider RIMM to the upside; a sell stop can be set 2% below entry.
From the Bear Cave: Bears can press the downside in Apollo. Watch for weak follow-through, and consider setting a buy stop 2% above entry. Another option is New Oriental (EDU); a buy stop can be set above $52-$53.
Quick Check Around the World
Asian trading closed with the Hang Seng -0.42%, India 1.99%, Nikkei 2.99%, Taiwan 1.99% and Shanghai 1.47%.
Glancing towards Europe, we see the CAC -1.09%, DAX -0.95%, FTSE -0.74%
As of 8:00 AM EST, S&P Futures are trading -9 to 786, and Nasdaq futures are -12 to 1223.
A Look At Commodities
Crude oil is trading -1.06 to 48.60. Gold is +3.50 to 928.50. Silver is +0.30 to 13.010, and copper -2.10 to 182.35.
The dollar index is +0.0050to 85.9000.
On the Radar
07:00 MBA Mortgage Applications
08:30 Challeneger Job Cuts
08:30 ADP Employment Change -648k
10:00 ISM Manufacturing
10:00 Pending Home Sales MoM
10:00 ISM Prices Paid 35.5
10:00 Construction Spending -2.0%
Click here for the full trading radar.
Hope you have a great April Fool's Day! Good luck!
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