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ITT Educational Services Inc. Message Board

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  • mike9morr mike9morr Jan 11, 2013 10:24 AM Flag

    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?

    wait there is more to come, i dont know if cash will last, if thats the case will need to raise $$$$ and will dilute price if you want my view. July ?

    Sentiment: Sell

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    • 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?

      Sentiment: Strong Buy

      • 1 Reply to thedeathrace
      • I think ESI should look into ED X as a way of growth / expense cutting. Virtual classrooms are going to be the next growth leg as most aggressive colleges are moving ahead and will be the BIG thing.
        Keep in mind birth demographics were way off in the 90's so dont expect anything big with any of these schools. Inflation will play big from here on and at 9.4 % currently , people are not going to be able to afford.

        Sentiment: Sell

    • citi rates a SELL at todays prices but could get a quick minute bounce because the dollar is tanking

      Sentiment: Sell

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