shares245 and mick6morr, you guys are bears on ESI. Has worked great. Drop looks over to me though. What u think re my recent posts?
shares245 and mick6morr,
I like to get contrary opinions on my strong buy call on ESI. You dudes have been bears based on my reading of recent posts from you and you have been on the mark. I wrote a couple of posts with a more positive viewpoint, numbers, and other stuff. What u think about my prespective? Any thoughts? If you think I am smokin' something, what parts are I not seeing straight re ESI. Nothing wrong with setting me straight if I am on drugs or something. I already bought the stock this week on the huge dip. I aint making any money on it so far, but I am not doing a day trade thing here. I am going to ride this one out and could even hold it for a couple of years if the idea starts working.
So your view is that ESI runs out of cash in July (2 quarters) and then has to do a large equity offering? Interesting. But ESI has a large chunk of cash on the balance sheet now and the 2009 RSA only seems to be a $35 m exposure that would come into play in 2014 (not 2013). ESI cash now is well over $100 million. I guess it comes down to student enrollment figures. I listened to the JP Morgan webcast presentation made this past October. ESI managers said that they are cutting cots by $50 m. This is going to generate a big number in cash savings I suspect. My analysis does not seem to indicate that any looming cash crunch, but if there were one, it would not be very meaningful. Any further thoughts?