‘You Could Learn A Thing Or Two’ Trade
If you were a teacher and asked to grade Wall Street, we think you’d probably flunk the whole bunch. Or perhaps you’d send capitalism to the corner wearing a dunce cap.
But all is not lost. Capitalism and education are not in mutually exclusive cliques. In fact, they can work together – on the same team.
Indeed, education is shaping up as an important part of the Obama stimulus package. That’s right – the President plans to spend on education to bring about economic recovery.
Look for the administration to drop $150 billion on Obama’s “new vision for 21st century education. One where we're not just supporting existing schools, but spurring innovation.”
And for-profit houses of learning are likely to play a part. That’s because the White House initiative will probably spark a trend – one in which more people return to the classroom.
As a result, we could see students worth more to their employers – and education stocks worth more to your portfolio.
What’s the trade?
“I’d look at the Apollo Group ,” counsels Guy Adami. “The good news is that there’s probably more room in this stock. The bad news is that it topped at $94 and there’s been some insider selling. I like this stock but it’s ahead of itself.
What’s the bottom line? “I think it’s a buy around $73,” Adami concludes.
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Trader disclosure: On Jan 28, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (BAC), (MSFT), (MS), (TM), (MCD); Seymour Owns (AAPL), (BAC), (EEM), (F), (FXI); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (MSFT), (UNH); Finerman's Firm Owns (DNA) & (DNA) Call Spread; Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (COF), (USO)
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