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CECO, ESI, DV, CPLA, COCO, CEU, Schools Stocks 15.30% undervalued

^{Published on 2011-01-26 12:31:14 - WOPRAI}
 

January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Schools sector and these stocks are the most undervalued as of today. CAREER EDUCATION CORP (NASDAQ:CECO), ITT EDUCATIONAL SERVICES INC (NYSE:ESI), DEVRY INC (NYSE:DV), CAPELLA EDUCATION CO (NASDAQ:CPLA), CORINTHIAN COLLEGES INC (NASDAQ:COCO), CHINA EDUCATION ALLIANCE INC (NYSE:CEU) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     CECO       CAREER EDUCATION CORP               22.13          26.13          15.30% undervalued          Schools                
     ESI        ITT EDUCATIONAL SERVICES INC        70.72          92.13          23.23% undervalued          Schools                
     DV         DEVRY INC                           47.38          58.67          19.24% undervalued          Schools                
     CPLA       CAPELLA EDUCATION CO                57             75.25          24.25% undervalued          Schools                
     COCO       CORINTHIAN COLLEGES INC             5.4            13.57          60.19% undervalued          Schools                
     CEU        CHINA EDUCATION ALLIANCE INC        2.3            4.66           50.66% undervalued          Schools                

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

CAREER EDUCATION CORP (NASDAQ:CECO) - Career Education Corporation, through its subsidiaries, provides educational services primarily in the United States. The company operates schools, colleges, and universities that offer doctoral degree, masters degree, bachelors degree, and associate degrees, as well as diploma and certificate programs in various career oriented disciplines. Its academic programs include career oriented disciplines, such as business studies, visual communications and design technologies, health education, information technology, and criminal justice and education in an online, classroom, or laboratory setting; and culinary art programs in the career-oriented disciplines of culinary arts, baking and pastry arts, and hotel and restaurant management primarily in a classroom, kitchen, or online setting. Career Education also offers health education academic programs complemented by programs in business studies and information technology in a classroom, laboratory, or online setting; and arts and design academic programs in the disciplines of fashion design, game design, graphic design, interior design, film and video production, and photography and visual communications in a classroom, laboratory, or online setting. The company provides education to approximately 116,000 students through approximately 90 campuses. It also operates in France, Italy, and the United Kingdom. Career Education Corporation was founded in 1994 and is headquartered in Hoffman Estates, Illinois.

ITT EDUCATIONAL SERVICES INC (NYSE:ESI) - itt Educational Services Inc. offers postsecondary-degree programs in the U.S. that provide diplomas as well as associates, bachelors, and masters degrees in information technology, electronics technology, drafting and design, business, criminal justice, and health sciences. As of Mar. 22, the company operated 90 itt Technical Institutes in 33 states that primarily offer career-oriented degree programs to about 47,000 students. Headquartered in Carmel, Ind., itt was started in 1946.

DEVRY INC (NYSE:DV) - DeVry Inc., through its wholly owned subsidiaries, owns and operates DeVry University, Advanced Academics, Ross University, Chamberlain College of Nursing, and Becker Professional Review. DeVry University offers associate, bachelor, and master degree programs in technology, healthcare technology, business, and management at 94 locations in the United States and Canada, as well as through online platform; and graduate degree programs in management through its Keller Graduate School of Management. Advanced Academics provides online secondary education to school districts in the United States. Ross University offers medical and veterinary medical education through Ross University School of Medicine located in the Caribbean country of Dominica and Ross University School of Veterinary Medicine located in St. Kitts. Chamberlain College of Nursing provides various nursing degree and degree completion programs at its campuses in St. Louis, Missouri; Columbus, Ohio, Phoenix, Arizona; Addison, Illinois; and Jacksonville, Florida, as well as online. Becker Professional Review prepares candidates for the Certified Public Accountant and Chartered Financial Analyst professional certification examinations, as well as the Project Management Professional certification examination; and offers professional education programs and seminars in accounting and finance. These classes are taught in approximately 300 locations, including sites in 40 foreign countries and DeVry University teaching sites. The company was founded in 1931 and is headquartered in Oakbrook Terrace, Illinois.

CAPELLA EDUCATION CO (NASDAQ:CPLA) - Capella Education Company, through its subsidiary, Capella University, provides online post-secondary education services in the United States. It offers a range of doctoral, masters, and bachelors programs in various markets, such as behavioral health and human services, business management and technology, and education and public service leadership primarily for working adults. The company also provides various learner support services comprising academic services, such as new learner orientation, technical support, academic advising, research services for doctoral degree candidates, writing services, and online tutoring; and administrative services consisting of registration for classes, application for financial aid, paying tuition, and accessing their billing statements and transcripts online. In addition, its learner support services include library services with access to collection of online journals, eBooks, and interlibrary loan services; and career counseling services that comprise individualized phone, e-mail and face-to-face communications, online newsletters, online seminars, and conference calls to provide career planning services to learners and alumni. As of December 31, 2009, it offered approximately 1,050 online courses and 36 academic programs with 124 specializations to approximately 34,000 learners. Capella Education Company was founded in 1991 and is headquartered in Minneapolis, Minnesota.

CORINTHIAN COLLEGES INC (NASDAQ:COCO) - Corinthian Colleges, Inc., a post-secondary education company, provides various diploma programs, as well as associates, bachelors, and masters degrees in the United States and Canada. Its diploma curricula include medical assisting, medical insurance billing and coding, massage therapy, dental assisting, pharmacy technician, medical administrative assisting, automotive and diesel technology, HVAC, surgical technology, plumbing, electrical, nursing, electronics, and computer technology programs. The companys degree curriculum comprises business administration, criminal justice, medical assisting, accounting, paralegal, marketing, computer information technology, legal assisting, hospitality management, court reporting, applied service management, and film and video programs. It also offers masters degree in business administration and criminal justice. In addition, the company provides online learning to the students pursuing education through online. As of June 30, 2009, the company operated 89 schools in 24 states, and 17 schools in the province of Ontario, Canada under Everest and WyoTech brands. Corinthian Colleges, Inc. was founded in 1995 and is based in Santa Ana, California.

CHINA EDUCATION ALLIANCE INC (NYSE:CEU) - China Education Alliance, Inc. provides online education and on-site training in the Peoples Republic of China. It distributes educational resources online. The company, through edu-chn.com, offers a database of exams and test papers and courseware under the name of Famous Instructor Test Paper Store for colleges, and secondary and elementary schools; and video on demand, which includes tutoring of exam papers and exam techniques. These examinations cover PRC primary, middle, and high school exams that are used by students who are primarily in age range of 6 to 18. The company markets its on-site teaching services under the name of Classroom of Famed Instructors. It also offers a program of online vocational training services, and operates 360ve.com that offers job search capability and career planning courses for university students. In addition, the company sells prepaid debit cards that permit its subscribers to download materials from its Website over a specified period; and engages in the publication and distribution of Scientific Discovery, a scientific information newspaper with a focus on education. China Education Alliance, Inc. was founded in 2004 and is based in Harbin, the Peoples Republic of China.

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