The Apollo Group took a dive today. The stock was down over 17% from yesterday's close. Initially I thought this company just made loans to school students. However it actually teaches students as well. One of its subsidiaries is The University of Phoenix.Part of the reason for the dip in price today was because the SEC launched a probe into the company's accounting practices. That is never a good thing. If the result is a restatement of earnings, look out below. There may also be some fines involved.
The only upside is that this was an informal inquiry by the SEC. They did not come in breaking down the doors and arresting people. Still there was enough uncertainty to drive down the price. Yesterday the stock closed at $73. Today it closed at $60. I have made some money playing Apollo before on a dip. I am gathering my funds to make a purchase soon.
