I compromised on Lincoln. I had it in three of my portfolios. I sold my position today in two of the three portfolios and am keeping it til death do us part in my IRA. I was also spooked by Corinthian having to lower tuition to compete. Lincoln can not afford this scenario, it's going to be a long painful ride but could still pay off in the long long long term for those schools that can survive
Yeah, I was spooked by the covenant breach as well, smells of bankruptcy to me :) I sold my shares at a loss today. It's part of doing business as an investor. I am willing to concede that COCO is and has been a value trap
Yeah, it's just a tiny weeny company as far as publicly traded stocks go ! Definitely fits into micro cap territory ... I ran into it while doing a screen for low P/B stock .... and I have started a small position and may DCA for a while as well ! I am familiar with this area of Ohio as well since I spent many summers going to Cedar Point ! So there is a little nostalgia for me owning a piece of a Sandusky bank :)
Brian Grosso is just a kid who is totally controlled by fear and greed ....... He wrote one article supporting COCO while he was being greedy ..... and then he wrote another article bashing COCO while he was being fearful ....... He is more a case study on emotional investing and why it leads to buying high and selling low :)
The company's cash and cash equivalents were at $32.82 million as at Dec. 31, 2013, down 29.56 percent from $46.60 million at Jun. 30, 2013.
The company's total debt went down 44.94 percent to $76.57 million as at Dec. 31, 2013 from $139.10 million on Jun. 30, 2013.
The company witnessed a decrease in debt to equity ratio to 0.14 for the quarter ended Dec. 31, 2013 when compared with 0.24 in Jun. 30, 2013.
Im a sucker for for profits ! Now that the stock market is flying high the only positions I have are COCO and LINC ..... and I am not selling till they hit 20 dollars a share ! and it will happen !
I view for profit schools as low risk/high reward long term investments. The lawsuits will probably get thrown out and even if they are sued it probably won't amount to much in dollars and cents. They can't be hurt from a PR stance anymore than they already have and all the bad news is cooked into the stock ...... Most of these schools have little to no debt .... you can't go bankrupt if you don't owe anybody any money ! Also, these schools are very flexible at dealing with adversity .... admission goes down ... they just cut the staff .... the government wont come down too hard on these schools because they are the only option for minorities, inner city populations, and people that can't get accepted at traditional colleges. These schools serve a good purpose ! and they will only get stronger from the scrutiny ....
I like the direction Lincoln is going but yes, its going to be a slow, painful process. The good news is I think the share price has bottomed ,,,,, so not much downside at these prices. I think they avoid cutting the dividend until hell freezes over. If they haven't cut it by now I don't think they will. Not good foresight to start a dividend a couple years back anywhoo and then it was .25 a quarter.
I got interested in TEVA after I heard they were partnering with PG to sell OTC druggies. I had never even heard of this company before. But if PG was willing to do business with them I was confident it was a fine company. This arrangement could benefit TEVA more than people realize 5-10 years down from now. PG is a master at brand building and PR and that is sure to benefit TEVA. Anyway, taking away all the psychological fears, I felt TEVA was putting up impressive numbers in revenue growth and free cash flow. I was ecstatic to see TEVA trading for under 20% intrinsic value. I see TEVA as a no-brainer long term hold and have been buying and buying and buying .......