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Career Education Corp. Message Board

  • shushlife shushlife Feb 27, 2013 6:31 PM Flag

    6$ / Share NET CASH!!!

    2013 will be a great year for CECO holders.

    Sentiment: Strong Buy

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    • Why will 2013 be a great year? The CEO said their results were "unacceptable and unsustainable" and that they face "substantial enrollment headwinds". Starts fell 16% and total enrollments fell 19% and operating losses got worse. EBITDA was negative and worse than a year-ago. Now, when you say $6/share cash, it's actually $4.87 but $1.48 is restricted so that's net cash of $3.39 and even then that's not all available to shareholders for a variety of reasons.

      If you're going to invest in post-secondary education concepts, there are others that are in much better shape. While this may look like a "steal" to some because of the cash position, this is a classic value trap. You'd be catching a falling knife.

    • They are not burning cash like everyone predicted 6 months ago. We might have to wait until 2014. I thought that the report was OK, not worse than I expected. A bit surprised at the sell off.

      Sentiment: Strong Buy

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