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Career Education Corp. Message Board

  • betasplen1 betasplen1 Nov 12, 2012 8:57 AM Flag

    Read the CC transcript

    and though I am impressed with Mr. Lesnik's knowledge of the industry, his detailed read of the current state of CECO and what needs to be done to turn this around, one thing that made me turn the other way is that he alluded that cash will be drained significantly as they teach out the programs they are shutting down. They are looking to get their credit agreements re-worked - my take is that they might need to tap into that despite the large cash position and almost zero debt today. More importantly, the high probability that they won't buyback anymore shares in the midterm has made this much less attractive of a buy (for me) though it is already trading at 60% of cash. I'll check back in a couple of quarters to see if the expense cuts has helped to minimize cash burn from the teach out initiative.

 
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