Coco can't win in the enrollment game with its current paradigm in place
1. With its bad reputation and high costs, it can not attract quality students. It gets junk students.
2. Junk students produce junk results. Those results sully COCO's reputation further.
3. The DOE and regulators look at the results and cry foul. And the results continue to make front page headlines further destroying the reputation.
4. Repeat 1-3.
This game will end. Either by Government funding cuts, regulatory intervention, or by consumers refusing to enroll, no company can continue to produce a junk product and stay in business.
COCO Management is clueless and just trying to hang on a little longer until retirement. investors don't understand business, nor education. They buy the smoke and mirrors stories of a company in complete DISASTER MODE.
I absolutely agree. COCO's already poor brand equity is being further eroded by bad press. Management claims that they had to increase their tuition to comply with the 90/10 rule. So, now let's look at their strategy, extremely poor brand equity at premium prices. I don't see how they can survive.