I understand the sector is hated and they're going through a turnaround but this is kind of ridiculous. This company has been consistently profitable for years and the jobs market is making a little bit of a comeback. Just a few years ago this was doing $2 eps on a share count of 100 million (vs 66 million now). It's trading at a lower value than the eps they did (accounting for lower share count).
Venture Capitalists love situations with lots of cash and little or no debt. They can handle the cash burn by going into teachout mode for schools and academic programs that have no chance to rebound. Meanwhile they can sell off the profitable schools, especially the international piece. Business insurance will cover any lawsuits. CECO broken up and disposed of is worth far more than $2.60 a share.
$80m of the cash is restricted for their "not for profit" schools (which they apparently must allocate it to), even if they don't have to report it in the restricted balance. add in a couple more quarters of $15-$20m cash burn, a lawsuit settlement or 2, and Steffey's FY13 compensation and CECO's cash balance isn't so attractive...
hehe. another guy whose alias born date was right near the low for the past 13 years and who has only posted negative articles. i smell a rat. me thinks someone is trying to manipulate the stock lower so he can get in cheaper.