Impressed by Contrarian Ideas

Before I move on from my weekend observations for reading Investor's Business Daily (IBD) for first time in many months, I want to share a couple of other observations from my experiment. Inverting the traditional wisdom and looking for stocks with the lowest possible rankings has turned up some interesting stock ideas. I will add a regular look at the momentum traders paper in search of the super weal contrarian opportunities. I uncovered two major macro thoughts by the process -- in addition to the ideas discussed yesterday.

Most of the major for-profit education stocks are trading in the single digits. Honestly, I expect most of them to stay there for some time; there are no signs of fundamental improvements in the group. Enrollments are down, defaults are high and graduation rates are abysmal for many of the companies in this sector. I am still short Apollo (APOL) and will be into the new year at least. The business model for this industry is hopelessly flawed and the sector needs a complete reorganization before it can improve....572 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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