While Davenport believes in the supply & demand side of shares traded, I believe more in the supply & demand of job opportunities. So, which is a greater reality in our day. As I pointed out earlier, only a small portion of any given day's volume is actually real. The rest of the trades are high frequency or ghost trades by institutions to create an image they desire (to cover a short or perhaps add millions of shares at the right price). "We" are currently at a price-to-book ratio of .29x ... ridiculous. This is a ridiculous price level for a profitable company with revenues over $1.5 Billion, free cash flow over $100 million, and a debt of $30 million. Non-ATB enrollment is growing. Institutions like GS, Well, and the Washington Post are buying.
So, let's talk about a truly functioning supply and demand. Jobs. The economy has been stuggling. You do not have to look very hard to find an article about high unemployment numbers amongst college graduates. All college graduates from Ivy Leaque to your local community college are stuggling to place graduates. College tuition is outrageously expensive. There is a role for institutions like COCO to provide an education for a reasonable price.
I believe we are at (or very, very near) the bottom for the for-profit education sector. glta
Reframe your question this way. COCO does not believe that 35% of its students should be required to be current on loan repayments. So they believe that less than 1 in 3 should have "student outcomes" that would allow them to repay debt. The corallary is that they believe that a greater than 2 in 3 failure rate is acceptable. Not that COCO management says that student outcomes are the company's #1 priority. If Apple said quality phones were its number one priority and 2 in 3 failed, would you say that Apple's rhetoric matched its reality? If your internet worked 1 in 3 times, and the service provide told you that was "normal and expected," would you find this acceptable?
What do you believe would define success in that context? Note that FPE has a failure rate 2-3X traditional schools even after they manipulate the situation playing every game to keep students current. If you are unaware of the scandalous games they are playing in this context, note that COCO is the worst offender. Find out what they are doing before you reply to this so you look at least a little informed.