All monies made are going to be held for all the pending litigation to come. There will be so many student lawsuits and I suspect a separate class for teachers who were fired for refusing to alter academic and/or attendance records..... COCO bought Heald at top of the market.
You are brain dead if you cannot figure that a six month timeframe to sell everything results in much lower prices as the sharks swim in the water waiting for the carcass to finally die.
If true, this will be the most important lesson for you to carry with you the rest of your life. NONE of you understood what was happening behind the scenes as between the government and COCO and all for-profits for that matter.
My wife was a dedicated teacher who was fired by COCO because she refused to alter attendance and academic records so the federal money could flow beyond the date in each quarter where most of the money could be kept regardless of the ultimate student outcome.
COCO became seduced and then corrupted by the lure of "easy" federal money.
Yeah, government consent forcing asset sales.... you think the sharks are going to pay top dollar for anything other than Heald? The sale of Heald will give you jokers hope but the rest of COCO will be sold for next to nothing because the buyer will have to invest untold millions into restoration of reputation because the only game in town is federal monies. As you can clearly see, without federal monies.... COCO is nono.
Bidding war? What is the matter with you? There isn't going to be significant consolidation so much that any bidding war breaks out. These for-profits are under a microscope and the cost to turn around Everest will be enormous. Heald is the big money play because they had so much goodwill but I guarantee you COCO will lose big on that sale. They paid top of market valuation. In the end it may be hedge funds that buy these campuses and consolidate but they will not pay up and there are no significant strategic buyers AND COCO has six months so buyers are going to wait until they can get bargain basement prices.
You aint getting one dime and you may lose your remaining $0.27 if you remain this naïve.
Evidently there are still a lot of hard lessons to learn about Mreits; the most levered investment to interest rates and the interest rate cycle.
No, you should stop investing in companies that are garbage and POSs. COCO got lost. My wife was fired from COCO for refusing to pass students who failed her class. You have no idea how the seduction of federal money turned COCO from what I hope was a good educational organization to a corrupted and compromised organization. COCO is getting what they deserve. Who knows how many good teachers were fired and like my wife could not find work again because they could not get a fair hearing because COCO on your resume became a huge negative.
How many times do you quick buck artists ever see what you think you see. This is worth ZERO and they have to sell out so there will be a buyout that largely consists of monies to settle out existing business issues like paying down excessive debt. COCO paid a lot for Heald hoping to realize big things that never happened and will sell Healtd for substantial loss since they bought at market top in terms of For profit school valuations.
EROC gained nothing from the sale of midstream assets which were the keys to the recurring revenue kingdom for EROC. This is a dead stock limping to its own funeral.
This company is in its death throes. You are watching an entire market move ahead while this stock in this sector is dying. Molycorp is a tribute of too much speculative capital being consumed on the hope and a wing and a prayer that a small cross-section of the rare earths space would FOREVER have high pricing. No commodity in the history of the world has achieved any secular trend of that kind. Certain commodities get too high technologies are developed to use less or substitute or replace. The market works.
The only thing saving MCP now is a highly dilutive preferred offering that rewards the preferred and dilutes the common to death. There are no common shareholders anymore. There is no "common" interest. Just traders trading until the roof finally caves in.
LINE has now proved that all that was said about Berry Petroleum will never turn out to be true and must now buy more in order to paper over Berry....
Run away from LINE as fast as you can. There are better E&P MLPs out there.
Now BDCs are free at last and I think individual investors entering them will rebuild a solid base over time. Today's positive volume for many BDCs was on the order of 8x normal average which allowed for the last index sellers to exit gracefully.... I grabbed up my last 1K shares @ $12.76 today to fully fill in my position. My NMFC had an even better day as well as ARCC and FSIC. Picking up shares of solid BDCs in this downdraft of wall street's creation will look like shooting fish in a barrel over the next few weeks.
Bloomberg didn't have to go with the story until the market closed and as it was they had the story wrong. Bloomberg should be ashamed of their reporting because they didn't check the facts before airing it.
The selloff was quadruple witching hour stuff. Look at volume the last hour of trading.. 1.3M shares and in light of the recent events it is not surprising there was a lot of option activity in FSIC. The shelf offering by FSIC is SOP. the $1.5B (although I haven't seen details of breakdown) is simply giving FSIC the ability to issue those shares...
Anyone suggesting they would sell based upon shelf offerings should not be investing in the BDC, REIT, MREIT, or MLP space because that is always happening.
Makes you wonder how something like that happened near yesterday's close. Was it to force someone's hands by getting an opening salvo as to perceived market value upon announcement?
You need to look at Citi's and Credit Suisse's analyst reports. MWE has done 50/50 like every other MLP for capex. MWE's circumstances are they went into a longer build out cycle without taking care of distribution growth. Now Credit Suisse is convinced MWE understands NOW is the time to start delivering on distribution growth. So if we finally see an increase in growth I suspect MWE will start rising towards its higher end. I cut back my shares in high $70s but held a large core that I still think can work out well.
Remember, MWE has no GP so your thought that debt is too high..... no GP and no IDRs is a great equalizer here. I am not saying buy MWE but I am holding believing management has seen the light so to speak in terms of finally delivering on real distribution growth.
ETE might for for MWE; no GP issues. Kinder couldn't do a deal without it being highly dilutive. Enterprise's cost of equity a lot cheaper than Kinder and there would be no "GP to GP" valuation issues... just a straight buyout of the whole of TRGP/NGLS.
I would rather seen NGLS/TRGP stay independent..... after last quarter's blow out numbers maybe NGLS's valuation is not being fully realized.
I don't see how Kinder does it without being so dilutive to its shareholders. Kinder's CFO indicated their cost of capital is 9%. Enterprise, on the other hand, if Kinder goes for it Enterprise might be left with no choice but to go too and their cost of capital is 300-400 basis points lower meaning less dilution. And Enterprise keeps adding to Mont Belvieu capacity as does Targa and both have an interest in exporting and Targa has great assets in Louisiana and Texas with common overlap.
Its hard for me to see Enterprise stay out if Kinder gets into a process with Targa. Shareholders in MWE are very frustrated by delays in distribution growth that has been promised for the last three years. I own both MWE and NGLS.... would be better for NGLS to buy MWE; not the other way around IMO.
You can break off and return I suppose. I can't help but think this little false alarm isn't waking up Enterprise anyway. EPD has a lot of common interests with NGLS. They certainly have the currency and appropriate cost of equity to do. I am more surprised the stock prices did not fully retrace in the after hours.