Universal Technical Institute, Inc. (NYSE:UTI)

Evaluating a screen. Feel free to ignore.

just good feeling

Zack's bear of the day and a deteriorating chart spell short side profits for UTI.

http://clearstation.etrade.com/cgi-bin/details?Symbol=uti&Refer=http://clearstation.etrade.com/cgi-bin/details%3fSymbol%3dUTI%26Event%3dopen%26purv_id%3d18081%26Param%3d%26Ordering%3dOPEN_DATE%26PortfolioName%3dZacks

There is less momentum, less volume, and less buying going on. We are in the last part of this rally.

The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).

People seeking re-education due to layoffs and the increasing cost (profit) of techincal services to the consumer as tied to inflation. These are recession-proof jobs, folks.

I worked for this company for many years and made a fortune off off these people, this company is so heavy in management I can't beleive it has not crashed yet

Buying on the dip

More and more people are headed for higher education, and vocational, skill-specific institutions like this one are going to become less popular. I am more cautious about this instituion because cars are being built to last longer and are having fewer problems than in the past. Not to say that the need for mechanics will be completely diminished, but the demand for them may decrease to where there is no need for large institutions like this one.

motley fool

Low enrollment numbers bother me for the near term. Long term view required.

Continued growth ahead.

company trying to grow too fast, not opening schools slated to open. too much middle management.

It will be a while before we start bilocating to get from point A to point B. college is too expensive and keeps people out of the workforce too long, then they have to spend years paying off debt from most jobs that are outsourced and do not pay well enough. UTI will get these people into the workforce sooner and they will not have much debt service to pay down. This type of educational vehicle will be in overdrive by the end of the year.

HG . . .

Company is prone to nepotism and passing out

Universal Technical Institute (UTI) has provided technical education for over 40 years, in post-secondary education for careers as professional automotive, diesel, collision repair, motorcycle and marine technicians. They offer undergraduate degree, diploma and certificate programs at 10 campuses spread across the United States. Working closely with leading original equipment manufacturers (OEMs) to understand their needs for qualified service professionals, UTI also involves in providing manufacturer specific advanced training (MSAT) programs, which are being sponsored by the manufacturer or dealer, at 19 dedicated training centers.

According to U.S. Department of Labor, automotive service is identified as a high growth employment sector and opportunities look sound for those with the necessary skills. Encashing on the same, manufacturers, dealer networks, transportation companies and governmental entities are seeking preferred education providers which can offer high quality curricula and have a national presence to meet the employment and advanced training needs.

Conversely to the above, for year ended Sept 2006, its average undergraduate enrollment saw an increase of just 5.85% as compared to a 17% increase witnessed in 2005. Its net income also declined 24% as compared to prior period, owing to higher operating costs and lower capacity utilization. Going ahead, a turnaround looks bit difficult in 2007, as is evident from higher capital expenditures in coming quarters, putting pressures on operating margins.

UTI’s strategy has been to create more funding opportunities by offering more scholarship programs, alternative funding contracts and industry support for students. Further, it is planning to spend over $55 million in the coming quarters to expand capacity. But the above aspects are not going to help UTI to expand its student’s base in the coming year, as things will mature not before 2008. Counting on the above, it’s not easy to justify bullish sentiments for the stock.

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I hear people saying that the market for the professional training they offer is growing but I don't see any evidence for it myself. Do cars break down more than they used to?