Bush’s Plans Buoy Stocks of Educational Services
Buoyed by President Bush’s plans to improve America’s schools, shares of companies that provide educational services and products have been among the best performing stocks in 2001.
“Clearly there is an emphasis on education in this administration which bodes well for the private providers of education services,” said Dan Veru, executive vice president at Palisade Capital Management, which oversees $3 billion in assets.
After languishing for much of 2000, the stock of Sylvan Learning Systems (SLVN), a Baltimore, Md.-based provider of educational services to families and schools, has climbed 46% since the beginning of 2001.
Lightspan (LSPN), a San Diego-based maker of educational software and Internet products, has seen its shares, which descended steadily last year, rise 45% so far this year.
By comparison, the Standard & Poor’s 500 index is down 4.7%.
Even so, the stocks slipped in Tuesday trading, ahead of Bush’s speech to Congress. Shares of Sylvan fell 63 cents to $21.56, and shares of Lightspan dipped 3 cents to $2.09.