Never have I seen such dissuasive architecture. Every day some artificial law office is filing a class action suit against ITT Tech on behalf of the small investor on the premise that he or she needs protective representation & then are desperately advertising in a futile effort to enlist plaintiff participation, or give the perception that multiple class action suits are gaining momentum and war is at the front door of an indefensible defrauding company. What a horse & pony show, wag the dog at its finest! ESI, has 184 investors holding 115% of outstanding shares. Over a hundred are new & increased institutional positions since 12/31/12, and another 25% are ITT employed executive staff. Meaning no one but farmer Bob & cousin Stew are interested in recouping some loss in value. It is obvious that accumulation, and price deterioration is a deliberate strategy of those wanting more shares. These paper/ digital tigers are the artificial engineering of those effectively intimidating novice investors to avail bound shares at a discount. The real defendant in this litigating phantasmagoria should be the producers of this episodic hustle. If you can conjure a modicum of resolve you can sell your limited shares at an exceptional premium because why? Because you are the only one who has any!
Sentiment: Strong Buy
flint, you are correct regarding these low rent law firms. These law form have no legitimate business so they try to get in on some class action lawsuit stuff. It is pathetic. Furthermore, the SEC says that they are "investigating" ESI's private student loan guarantees. There have been no accusations of wrong doing. There have been no findings of wrongdoing. I find it amusing that the law firms are going to file claims because ESI shares drop as investors sold on the "news" of an investigation when there has been no wrongdoing claimed or found. I suppose that even if the SEC said tomorrow that their investigation was being dropped that the law firms would still sue. Regarding the shareholder base, I have thought about this for some time. All the "real" shares are locked up. The problem is that the are 9 million "fake" shares that have been created by short sellers. These 9 million shares are "owned" by various retail investors and the such. THe law firms will try to find a few of these dopes to enlist in their class action lawsuits.
You have got to be kidding Flintlock. Are you an ESI insider? ESI shares did not drop due to class action suits. they did not drop due to an SEC investigation. ESI stock dropped because Senator Harkins 2012 report of for profit schools painted ESI ITT as the WORST for profit school in the entire country. After that report ITT tech (ESI) started to experience a sharp decline in student enrollments. If you follow the quarterlies you will see that the decline in revenue continues. ESI is a flop. This company is doing shady business and it will fall apart very soon. I give it a year or two at best. Hold em if you got em, and watch for any signs of a sell, but I wouldn't put another cent into this stock.
esk, you are as full as much baloney as flint. Put a lid on it. Harkins report DID NOT paint ESI as the worst or even among the worst schools in the country. That is simply total hogwash. Harkins ridiculous and slanted report indicated that ESI's tuition costs were high, but then again he compared them to the hugely tax payer subsidized community college tuition rates. It is too bad that ESI does not also receive direct massive taxpayer subsidies. The Harkins report also made a big stink about ESI's private student lending effort. This was totally pathetic on his part as he during the committee hearings I watched complained that the education companies had "no skin in the game". Well, if you provide private financing student loan guarantees, then you have skin in the game. Harkins made no comment about any of that. Harkins also invited a Wall Street hedge fund short seller (whose firm was indicted for insider trading and was shortly afterwards completely shut down) as one of his primary witnesses. What a joke. ESI is the only education company that I have examined that has offered students any meaningful direct financial assistance (through its guarantees) to attend school. ESI has been in business for 60 years and none of their business is "shady", as you claim. If you are going to make some accusation to such, then be specific or shut up.
I'm pretty sure he's talking about the pullback a week ago or so, not in 2012. Shareholder lawsuits are pretty predictable for companies that shed ~80% of their value. If you think the company is so horrible and will fall apart very soon why are you holding?
Sentiment: Strong Buy