The stock I'm thinking about today is ITT Educational Services (ESI). A word of caution, though. This is more of a speculative play -- check the charts and you'll see what I mean. ITT provides "for profit" post-secondary educational programs to students in 38 states. This group has really taken a beating in the last four months. However, I think ESI has been consolidating for a few weeks now at approx. the $55 range. Today, it looks like it posted a reversal and closed up at $57.65. It gained 2.42 points today (a gain of 4.3%) on strong volume. This stock may very well make a run to $65 in short order because right now, about 25% of the float is sold short. A reversal like the one we saw today could spark a short covering rally before Friday (quad-witching expiration day). Also, among the "for profit" educational providers, ESI is one of the stronger players in the group. Their EPS change for the most recent reported quarter is +50%.
As always, stay cautious and happy trading. Remember to check out Wall Street Survivor. Sign up for free and play to win some cash prizes!
Obligatory disclaimer: This blog is for information only. Past results do not guarantee future performance. All financial decisions involve risk and there are no guarantees. The suggestions above are for informational purposes only and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
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