Trace Urdan (Wells Fargo) follows CECO. DOE Rulemaking for CECO et al may not be as bad as expected. Good news. Here's what he says:
For-profit education stocks continue a general upward trend note as analysts point to continued short covering as a boost to shares. Wells Fargo analyst Trace Urdan told Dow Jones that adding to the overall atmosphere could be the recent revelation that federal investigators are probing whether a former top Education Department official violated the law by allegedly sharing information inappropriately about new regulations with an advocacy group he founded. "While we believe the potential scandal is a relatively minor one, we believe it could have a significant dampening effect on planned negotiated rulemaking scheduled for this fall," said Wells Fargo in a note to clients, adding that this could lead "Department of Education officials to tread lightly and more carefully in re-imposing new gainful employment and other regulations affecting the sector."