Guess who’s winning as the private education companies are getting slammed this morning as the government cracks down on student loans to these schools.
If he’s stuck to his guns, Steve Eisman is probably rolling in it right now.
Months ago, Eisman took some heat from Keiser University, which named him as a co-conspirator in a scheme to take down for-profit education.
Eisman had given a “vitriolic” speech about for profit education at a Senate hearing this summer and someone from a Florida State college thanked him in an email for it.
Keiser, a private rival of state colleges, took it as evidence that he was conspiring with her to bring down Keiser and other schools like it.
Whatever ended up happening, it was worth it because today he’s seeing his predictions play out.
As Joe Weisenthal wrote earlier today:
Companies like Apollo, Washington Post, and Strayer have already seen their stocks get slammed, and now that’s set to accelerate.
Shares of Strayer in particular are off 20% in the pre-market after after the company reported dismal enrollment numbers. That comes as the government cracks down on student loans to these schools, which have a pretty dismal reputation right now in terms of repayment.
Like ’07-era housing loans, private education loans have a reputation of being overly pricey and saddled with high interest rates that kick in slowly, and they’ve had a sad record of repayment.
And this morning, shorts on the companies are playing out nicely.
So if he stayed strong, which we’re guessing from past character references, he does by nature, today is a great morning at FrontPoint Partners.
Bring out the lobster!