Education and Housing: 10 Stocks to Watch as Obama Proposes New Solutions
President Obama kicks off his reelection campaign this week with a three-day trip to announce a series of new mortgage and student loan initiatives.
In the aftermath of Republican resistance to his $447 billion jobs package, Obama will present his series of changes in small packages as to bypass the congressional barriers. According to a White House official Obama's plans to help the economy will not require congressional approval.
The campaign starts in Nevada on Monday, where he will unveil an initiative to make it easier for homeowners to refinance their mortgages. Nevada is one of the states most affected by the housing crisis.
Reuters reports that the Obama administration has been working with the Federal Housing Finance Agency (FHFA), the regulator for Fannie Mae and Freddie Mac, to find ways to make it easier for borrowers to switch to cheaper loans even if they have little to no equity in their homes.
Furthermore, FHFA "intends to loosen the terms of the two-year-old Home Affordable Refinance Program (HARP), which helps borrowers who have been making mortgage payments on time but who have not been able to refinance as their home values have dropped."
On Wednesday, Obama will stop in Denver to unveil a student loan initiative. Student loan debt, and the increasing number of defaults, has posed many financial problems for the Fed and educational institutions. In fact, the amount of money owed in federal student loans has surpassed $1 trillion, which is more than the total amount that Americans owe on their credit cards.
These issues are sure to bring in a lot of attention to Obama's campaign. So which stocks have an exposure to Obama's expected announcement?
To help you develop ideas, we collected data on housing and for-profit education stocks, and identified the names that have seen significant insider buying over the last six months.
Obama wants to boost these industries, and insiders seem to think the outlook is already very positive -- do any of these names make your short list? (Click here to access free, interactive tools to analyze these ideas.)
List compiled by Eben Esterhuizen, CFA:
1. ITT Educational Services (NYS: ESI) : Offers postsecondary-degree programs in the U.S. that provide diplomas as well as associate's, bachelor's, and master's degrees. Over the last six months, insiders were net buyers of 374,000 shares, which represents about 2.15% of the company's 17.43M share float.
2. Career Education (NAS: CECO) : Provides educational services primarily in the United States. Over the last six months, insiders were net buyers of 13,865 shares, which represents about 0.03% of the company's 53.62M share float.
3. Lincoln Educational Services (NAS: LINC) : Provides career-oriented post-secondary education services in the United States. Over the last six months, insiders were net buyers of 291,384 shares, which represents about 1.37% of the company's 21.23M share float.
4. National American University Holdings (NAS: NAUH) : National American University Holdings, through its subsidiary, Dlorah, engages in the ownership and operation of National American University that provides post-secondary education services primarily to working adults and other non-traditional students in the United States. Over the last six months, insiders were net buyers of 7,985 shares, which represents about 0.09% of the company's 8.72M share float.
5. Cambium Learning Group (NAS: ABCD) : Provides research-based education solutions for students in the United States. Over the last six months, insiders were net buyers of 3,000 shares, which represents about 0.05% of the company's 5.67M share float.
6. Avatar Holdings (NAS: AVTR) : Operates in the real estate business in Florida and Arizona. Over the last six months, insiders were net buyers of 10,749 shares, which represents about 0.16% of the company's 6.91M share float.
7. Ameron International (NYS: AMN) : Ameron International Corporation, together with its subsidiaries, manufactures and sells engineered products and materials for the chemical, industrial, energy, transportation, and infrastructure industries from its plants in North America, South America, Europe, and Asia. Over the last six months, insiders were net buyers of 65,500 shares, which represents about 0.17% of the company's 38.62M share float.
8. Griffon (NYS: GFF) : Operates as a manufacturing company. Over the last six months, insiders were net buyers of 14,000 shares, which represents about 0.02% of the company's 57.64M share float.
9. Headwaters (NYS: HW) : Provides products, technologies, and services in the building products, construction material, and energy industries primarily in the United States and Canada. Over the last six months, insiders were net buyers of 25,000 shares, which represents about 0.04% of the company's 59.07M share float.
10. Campus Crest Communities (NYS: CCG) : Focuses on building, owning, and managing student housing properties in the United States. Over the last six months, insiders were net buyers of 10,900 shares, which represents about 0.04% of the company's 30.58M share float.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Eben Esterhuizen and Rebecca Lipman do not own any of the shares mentioned above. Insider data sourced from Yahoo! Finance.
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