It will be interesting to hear from the company in a early November to see how the fundamentals of the business are doing. Clearly there's euphoria based on the sale of the European business. Unfortunately, that was somewhat of a crown jewel. It had an operating margin of +16% vs. a (12%) for the company and it had recently been the only growth segment. It's great they have a cash infusion to buy time for a turnaround but if the core business continues to be a melting ice cube, this could be a temporary high. Based on Yahoo Finance, the TTM EBITDA was ($62) million and this sale does nothing to improve EBITDA (in fact, it appears the total EBITDA will now be worse since Europe was a positive contributor). Hopefully we'll get better visibility into the enrollment trends of the remaining business so we can effectively model the future cash flows.
I've never held a position in this stock nor do I have any plans to establish one at this time. Unlike many other folks who post, I simply try to go with some facts and base my comments on the actual financials and not emotions. I would agree that if you are a speculative investor and have patience, this may have upside. If they can find a way to drive net new enrollments, their valuation multiples could expand and there could be decent appreciation.