Shares of the Apollo Group, the parent company of the University of Phoenix...

Discussion in 'General Distance Learning Discussions' started by jimnagrom, Oct 19, 2006.

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  1. jimnagrom

    jimnagrom New Member

    Shares of the Apollo Group, the parent company of the University of Phoenix, saw their largest losses in eight years, following a release of a report about drops in earnings and enrollment growth, Bloomberg reported.

    And the company’s announcement about its earnings also revealed that the external review it has undertaken to review its policies and procedures for granting historic stock options had uncovered “various deficiencies” thus far, which could require the company to restate its financial projections.

    Apollo is one of several for-profit higher education companies that are under scrutiny for possible irregularities in the granting of stock options.

    http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=APOL&script=418&layout=23&item_id=917869
     
  2. CargoJon

    CargoJon New Member

    Maybe they'll pay a little closer attention to education then and a little less attention to marketing and such.

    Not likely, but a nice thought nonetheless.
     
  3. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    I'm really, really glad I'm not one of their admissions salespeople right now!

    -=Steve=-
     
  4. leejabron

    leejabron New Member

    The issue with for-profits that is extremely worrisome is the prospect that they could, at one point in the future, not exist due to "bottom line" failures. How would one justify to future employers that the institution that granted them a degree no longer exists?

    If we look at the market for the MBA for example, and take into account how dynamic it is, its not hard to fathom a future where these for-profits will cease to exist IMHO. It will be continously harder for individuals to justify obtaining a degree at a virtual or a for-profit school as opposed to a respected brick and mortar, given that admissions standards for certain degrees will continously spiral downward in order to keep up with enrollment targets.

    Do you think people enrolled at U of P should be particularly alarmed at the above news?

    leejabron
     
  5. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    The issue with for-profits that is extremely worrisome is the prospect that they could, at one point in the future, not exist due to "bottom line" failures. How would one justify to future employers that the institution that granted them a degree no longer exists?

    In fairness, that's hardly a danger exclusive to for-profits. Many non-profit schools struggle financially, and some do have to close.

    Do you think people enrolled at U of P should be particularly alarmed at the above news?

    That seems like an extreme response. It's not like they're going to close their doors any time soon.

    -=Steve=-
     

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