Education

It would seem the normal process of democratic elections, that being vote, count up votes, and announce winner, has found a sticky wicket in the Western world’s leading democracy. Days passed, then weeks and still no confirmation. Autocrats around the world must be enjoying the spectacle of a marginalised leader refusing to accept what looks like a slam-dunk result. That said, it is almost safe to say the Joe Biden is the man. In the end, with more than 300 electoral votes, it wasn’t even that close. That his transition team now have to sit in parking lots outside of Government agencies and await the all clear, is both frustrating for them and frustrating for markets; markets that crave clarity just as the latest Covid wave threatens both the economic recovery, and plans for Thanksgiving. 2020 can’t end soon enough. Markets want clarity so they can start to get their arms around the Biden policy agenda, and see if there any stocks that got hit hard in the election run in, that may end up looking as tasty as a butter-glazed Thanksgiving turkey. One stock that comes with extra trimmings, is in the structurally sound, education space: Grand Canyon Education, the higher education service provider that operates the ground and online operations of Grand Canyon University. The shares had been doused by a number of issues from the DoE refusing to recognise the Arizona based campus as a not-for-profit University, to a short report; to the pandemic and a Biden win potentially ushering in a period of tighter regulation for the for-profit education industry. These issues have largely now been ironed out: the not-for profit designation was never really a benefit, the short report has been debunked, the pandemic is nearer the end than the beginning, and the regulatory fears are overblown as Grand Canyon falls well within the regulatory boundaries on both funding and on gainful employment. Grand Canyon is one of several compelling, mid-cap opportunities, that currently litter the market; a market that looks, at the headline level, increasingly tight in the belt.