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ITT Educational Services Inc. Message Board

  • victobiz victobiz Feb 13, 2013 12:21 PM Flag

    400,000 shares covered = about 2$ upward stock pressure. @ 30% float short and with 4 million shares covered = (10.25)(2) = 20$ = 36$ share price at 30% float.

    Only 400k shares covered after earnings. This is a bad situation for someone.

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    • That is 400,000 share covered in a panic selling environment where covering was super easy and the most optimal. There is no way each of the next 400,000 shares covered by the shorts will only be done with a $2 gain. Each 400,000 shares covered will be done at ever increasing price moves as the short seller buying will be taken advantage of by day traders, market makers, general investors and the such, all of them looking to gain from the short sellers pain, losses, and desperation buying.

      The wild card here are ESI earnings, which are highly leveraged to revenues. I think the ESI kitchen sinked the fourth quarter, so the worst is behind the shares. All private student loand debt issues are put to rest. They have put in place new incentives for students to sign up and the short seller disinformation campaign no longer has any legs. See my prior posts regarding the real truth about education.

      The tide has turned and this is why ESI shares are going higher now, not lower. I bought huge at $11.98 on the ridiculous collapse and am already up 50%. And I am not selling for a while - this will be a long term capital gain position for me.

      Sentiment: Strong Buy

      • 1 Reply to thedeathrace
      • That is 400,000 share covered in a panic selling environment where covering was super easy and the most optimal. There is no way each of the next 400,000 shares covered by the shorts will only be done with a $2 gain. Each 400,000 shares covered will be done at ever increasing price moves as the short seller buying will be taken advantage of by day traders, market makers, general investors and the such, all of them looking to gain from the short sellers pain, losses, and desperation buying.

        The wild card here are ESI earnings, which are highly leveraged to revenues. I think the ESI kitchen sinked the fourth quarter, so the worst is behind the shares. All private student loand debt issues are put to rest. They have put in place new incentives for students to sign up and the short seller disinformation campaign no longer has any legs. See my prior posts regarding the real truth about education.

        The tide has turned and this is why ESI shares are going higher now, not lower. I bought huge at $11.98 on the ridiculous collapse and am already up 50%. And I am not selling for a while - this will be a long term capital gain position for me.

 
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