UBS Investment Research
First Read: Education Update
The Rulemaking Process - What's Next?
Waiting For Notice Of Proposed Rule Making
The next step in the regulatory process will be a Notice of Proposed Rule Making
(NPRM) which
should
be
published
in
the Federal Register
at
http://www.gpoaccess.gov/fr/ in late spring/early summer and containing an
updated draft of proposed rules on the 14 neg-reg issues. We expect the language
on 9 issues that reached tentative consenses (including definition of a credit hour
and misrepresentation) to be close to that agreed on, while the language on the
sensitive issues (including gainful employment and incentive compensation) may
differ.
Public Comment Period Noise Over the Summer
After the NPRM we will get about a 45 day public comment period, ending mid-
summer, where interested parties can respond to the proposed rules at
www.regulations.gov. Comments should be addressed by DOE in the final rules.
After the public comment period, DOE will seek comment from federal agencies
including Office of Management Budget (OMB) and their own offices including
Office of Inspector General (OIG), Office of General Council, and Budget Service.
Final Rules In November
We expect final rules to be released in October, shortly before the November 1st
2010 deadline. These rules will then become effective on July 1st 2011.
APOL Remains Our Favorite, Followed By COCO And STRA
APOL (Buy) remains our favorite as we see the most upside risk to estimates over
the next few quarters and concerns over recent issues fade. In order of preference,
our other picks include COCO, STRA, DV, ESI, and CECO (all rated Buy).
Global Equity Research
Americas
Industrial Services
Sector Comment
3 February 2010
www.ubs.com/investmentresearch
Andrew Fones
Analyst
andrew.fones@ubs.com
+1-212-713 1416
Margaret O'Connor
Associate Analyst
margaret.o-connor@ubs.com
+1 212 713 2257
This report has been prepared by UBS Securities LLC
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