Grand Canyon is not the industry spokes-model (although I do not disagree with their rationale for examining a place among non profits). Thought we should move this up. Read it and get out before the inevitable self important malfeasance takes over.
From Investorplace.com, today
"The amazing thing is that Grand Canyon is, in fact, quite profitable. While some for-profit colleges have cratered lately, with COCO stock down 92% in the last 12 months as Corinthian struggles to make a profit, LOPE stock is up slightly in the last year and has seen steadily rising revenue and profits for some time. The university may be different, of course, because despite its for-profit operations it has carved out a niche as a Christian-affiliated institution and seems to be more concerned with doing things right than just making a quick buck.
That could explain the motivation for the move.
“The stigma surrounding the for-profit industry — some of which is deserved, and some not — is real and it is not improving,” Chief Executive Officer Brian Mueller wrote on the GCU website recently. He went on to say that “We believe it is the right time to consider an alternative to that model if it could be done in a way that would provide shareholders a fair return on their investment while also ensuring the long-term stability and legacy of the institution.”
So is this a rarity among for-profit colleges, or a trend?
Well, call me skeptical … but I don’t see Education Management Corp doing this anytime soon. It’s partially owned by Goldman Sachs Group Inc. (GS), and I’m sure profits are the most important motivation for that investment.
It’s nice to see Grand Canyon considering the move, but this probably is only an isolated incident.