These companies, not unlike Sallie Mae (SLM) and the Apollo (APOL) / Strayer (STRA) contingent are all in Obama's cross hairs. These are companies that are viewed at best as friction and a tax on the system and at worse, actual taxpayer rip-offs.

Cramer said he preferred Bridgepoint(BPI Quote) to Strayer(STRA Quote). "Strayer's been a leader," he said, but Bridgepoint is "the overlook one" and " the cheapest." ("Stop Trading!" 6-2-09)

Mandel, who runs Lone Pine Capital, observed that great franchises are valued cheaply now relative to "struggling" economically sensitive stocks that are in vogue as recovery plays. Mandel said Strayer (STRA), a leading for-profit education company, has great management and enormous growth potential. He conceded that the stock, at 25 times estimated earnings, isn't cheap, but that it "will be a far larger business 10 years from now."

33%

gaining

Now the incredible collapse of anything educational -- all of these schools that needed cheap student loans -- is shocking in its tailspin. Why should we think that Apollo Group (APOL) bottoms or DeVry (DV) or Strayer (STRA) or Career Education (CECO)?

BUY

7/26/07

7/26

up

40x earnings? Wake up one day and this stock will be under $100.