Sorry my report has caused consternation among some. Fact remains company declared its intention to buy back $200 mil. in shares, through an authorization way back in August.
To date, October, no shares have been bought,and it remains only an "authorization."
It was my sad duty once to report a software company had issued an "authorization to buy shares" four years in a row and had bought zero. I don't like issuing these reports any more than you like reading them. See our coverage of COCO in "The Twatsky Report."
We still feel purchases of COCO at this level will yield a profit.
Nice try, but during COCO's earnings conference call they told investors that they had not yet began to repurchase shares, but they would do so in the current quarter. The current quarter ended on 09/30/10. I would be very surprised if they have not repurchased stock given these statements.
So, you're the reporter creating all the bad "news". But your speculation isn't news; it's malicious rumor.
Well they're buying with company money and they have it by company cash flow and revolving credit. The executives didn't buy for themselves the previous time the stock hit the fours just for show. Executives will release the money and buy not only for other shareholders, but also to protect their own stock and options interests going forward.
Enrollment likely to drop? Maybe, maybe not. They eliminated new ATB enrollments over six weeks ago and have not changed their outlook. ATB enrollment has been decreasing as a percent of students over the past year anyway and still enrollment grew. With Apollo cutting back 2-year programs, others will benefit including COCO.
APOL in earning announcement did mention that they spent money on buyback in the last quarter, and they still have money to continue to do so. I think COCO can do the same. COCO has less money after merge earlier this year, but they'll keep buying back shares after they strengthen their balance sheet. we also need to watch how much cash flow after new rules are implemented.