More than 80 percent of the hedge funders are long vs less than 20 percent short. Steve Cohen is long with more than few million shares that he bought aggressively at around 30. This stock would have to bankrupt for short sellers to break even, but if there was 1 dollar eps, stock would go to 25-30 on short squeeze, however, if the stock will have it's consensus 2.5 eps, stock is headed to 40ish, and if the stock showed surprise, stock will skyrocket through 50 and up. This one is a no brainer. I have never seen anything more that was a sure thing than this but stock could drop further for technical reasons so my recommendation is hold but jump in as soon as u see price movements
With a current PE of 6 and an anticipated PE of 5, this company is set to easily quadruple in the next 6 months.
I am surprised that various mutual funds are not just grabbing every share available for such a massive gain in a 6 to 12 month period.... This company can easily bid pennies on the dollar for the Corinthian College campuses and gain impressive assets for very little cash and grow substantially in the next year or two.
ESI is the leader in the for-profit educational services and will come back easily to the $40 - $60 range like it previously traded in past years.
I didn't say stock couldn't go down more. I said for the next 12 months, this is a no brainer stock pick given the short interest. Short squeeze is inevitable. Only downright bankruptcy with more liability than assets could profit shorts at this moment. But we both know esi has more assets than liability so the most you could do with shorting is break even if the company went under. Even if the stock went down, it's just paper gain, depending on the amount of stock u r short, u might not be able to cover them without shooting the price up. Come on man, there are no more sellers, they have been drying up. Even after the sec filing, stock only dropped a buck. Worst news that esi reported and stock only dropped a buck. What do u think would happen with a slight good news? When they report that they are square with the dep. of eduacation? and when they give guidance? u wouldn't be able to cover at 30. But lets waited out and see what the devil happens