Quick KoolAid. That's your koolAid. If shareholders profit, whose money do you think they take? This is exactly the same KoolAid that put you where you are. Keep drinking.
If you are a shareholder and you think DE is going to save you, think again!
“We are optimistic that further conversations with the company will produce an acceptable plan in the next few days that protects the interests of students and taxpayers,” Education Undersecretary Ted Mitchell said in the statement.
Traveler: It helps to read your own Company's (i.e. COCO) disclosure. They disclosed that they are closing or selling ALL, repeat ALL campuses and operations. So if we believe your management, there is exactly 0/100 chance of a comeback.
You are not serious are you? It might help to use facts rather than your own fiction when doing analysis
"at most." That's what I said. Not good probability. That's what you said.
Worse yet, only tangible book matters. $1.20. That does not include any reserves for pending liabilities. The stock is worth at most 40-60 cents. That's it.
The near $400M pending write down of Intangibles and Goodwill will end this inflated balance sheet problem.
Let's just run some hypothetical numbers as follows:
1. Orignal value: $400M
2. Less 50% due to industry conditions (all stocks in industry are way down since purchase): $200M
3. Less 50% due to COCO's destruction of what was a great brand and business: $100M
4. Less 80% for pending liabilities, fines, etc.: $20M
5. Less 50% for firesale price and brand and liability risk to acquiring company: $10M
6. Less sales costs: 10%: $9M
If you disagree with any of these, please research these facts and say why you dispute the evidence. I have done extensive research, so you are fighting facts.
Corinthian disclosed the following;
1. It is down to its last $9M on its credit line. Interest rate increased to 15%!
2. Impairment charges coming.
3. It has not found a buyer for Heald or any Heald campuses.
In addition CA and FL both heightened scrutiny, increased legislation, put out scathing public PR, and called for COCO enrollments to end.
Other than that, it is just a normal day at COCO offices. Nothing really new to report.
Look up the Miami Herald article from today.
Florida alone could shut COCO down. If COCO is required to refund fees for students who were not given proper disclosure, COCO will immediately be out of cash.
In Congress, some lawmakers are furious that Corinthian is still chasing sign-ups. On Thursday, 12 Democratic U.S. senators, including Florida’s Bill Nelson, called on U.S. Secretary of Education Arne Duncan to “immediately prohibit” Corinthian from enrolling additional students.
“Corinthian has shown itself to be one of the worst actors in the for-profit college industry — under investigation by four additional federal agencies and more than 20 State Attorneys General,” the senators wrote.
In the coming days, once Corinthian figures out which campuses it will close — as opposed to trying to sell — it will have to stop enrolling new students at those closing campuses.
But for now, at the more than 100 Corinthian locations, the company says it’s “normal daily operations.” That means continuing new enrollments, with no requirement to warn these new students that their campus is about to either be sold or cease to exist.
SAN FRANCISCO (Legal Newsline) – California Attorney General Kamala Harris announced steps on Friday that would allow her to file additional charges against a post-secondary education company that allegedly violated California false advertising and unfair competition laws.
Harris filed a lawsuit against Corinthian Colleges Inc. (CCI) in October, alleging the company engaged in false and predatory advertising, unlawful use of military seals in advertisements, intentional misrepresentations to students, and securities fraud. Harris filed a motion last week asking San Francisco Superior Court for permission to expedite a supplemental complaint that would enhance the original complaint.
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The motion also indicates Harris’ intention to move for a temporary restraining order and/or preliminary injunction against CCI to force the company to halt its allegedly misleading advertisements and tell prospective students about its financial troubles.
“It is unacceptable yet not surprising that Corinthian Colleges continues to illegally target vulnerable Californians—including low income individuals, single mothers and veterans returning from combat—by lying about its dire finances and failing to tell prospective students that the schools to which they apply will all be sold or closed,” Harris said. “My office is seeking expedited action to force Corinthian Colleges to put the interests of its students above its rapidly shrinking profits.”
On June 19, CCI informed investors of significant financial troubles and plans to close or sell its campuses. Last week, CCI signed an agreement with the U.S. Department of Education to sell or close its campuses to third parties in the near future. Harris alleged CCI failed to inform prospective students about its financial condition or its plan to close and sell its schools.
Harris’ original complaint alleged CCI’s predatory marketing efforts targeted vulnerable, low-income job seekers and single p
SACRAMENTO (CBS13) — Hundreds of California veterans will now have to find money to pay for their education, at least for now.
California has suspended GI education benefits at all colleges owned by the Corinthian Colleges group. They say they’re trying to protect hundreds of veterans who currently use the GI Bill.
Attorney General Kamala Harris’ office filed a lawsuit against the for-profit school months ago. Afterward, the U.S. Department of Education limited federal money, and now the California Department of Veterans Affairs is temporarily suspending GI Bill benefits.
The move comes as the department worries students at the Heald, Everest and Wyotech campuses aren’t getting the education Corinthian Colleges is promising.
“If they don’t meet the criteria and the requirements that we’re looking for, we can permanently suspend the GI bill benefits,” said JP Tremblay.
The attorney general’s office is seeking a court order that would force Corinthian Colleges to stop advertising for the schools and warn prospective students that it is looking to sell or shut down its 24 California campuses.
Veterans currently enrolled in the college can finish their term, but the suspension means new veterans can’t enroll. Students who are far from finishing their curriculum will get additional help if and when any of the Corinthian campuses are sold or closed.
You are doing exactly as I said you would. To wit, this is copied from my prior post on the subject:
Look at Quickkeeping for example. This is retail investing. It works like this:
1. Do stupid things.
2. Lose money.
3. Play the victim.
Its the next "Enron The Smartest Guys in the Room." But our story is called: "COCO The Most Hated Guys in Any Room." "If you thought Enron was good, you haven't seen anything." (Jack)
Please don't take away our #1 advertiser.
Calling Corinthian "one of the worst actors in the for-profit college industry," Thursday’s letter from 12 U.S. senators, including California Sen. Barbara Boxer, urges the Education Department to "immediately prohibit" any new enrollments at the school.
A department spokeswoman said staff members were reviewing the letter.
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In addition, the California attorney general’s office is seeking to file an injunction that would force the company to tell prospective students about the impending shutdown or sale of many company schools.
Nothing has been sold, nor is currently in escrow pending sale, despite months of effort. Counting chickens before the hen is even pregnant is just stupidity times 10.
COCO will not be sold as a holding company. It is being shut down. The IRS only allows goodwill and intangibles (G&I) to be written down over a 15 year period, not at disposition, and if and only if, the entire G&I entity 100% as originally acquired is transferred. So if some portion of the goodwill and intangible like any asset already sold, any program already discontinued (and all three of COCO's main business are now fragments) of the assets or liabilities does not transfer, there is no tax consequence and the write off goes to zero. Therefore, it is obvious that the goodwill and intangibles (G&I) can not be deducted, as COCO G&I have been seriously fragmented already and will be further, thereby not qualifying under IRS rules.
you mean "attempted sale?" No sale of any asset whatsoever has been announced despite months of effort. In January, COCO sold an asset which COCO disclosed as follows:
"On January 9,, we completed the sale of the four Everest schools located in San Francisco, CA, San Jose, CA, Hayward, CA, and Los Angeles, CA to BioHealth College, Inc. The Company paid $2.3 million which consists of negative purchase price of $1.5 million and negative working capital of $0.8 million."
Yes, that's right, COCO paid to sell its asset.
1. If I am a student suing COCO, I am going to agree to cancel my lawsuit so COCO can get rid of any liability?
2. If I am the State of CA, which last lawsuit got $6.5M, and whose AG said publicly that that settlement was a scam, and COCO should pay much more this round, do you think I will settle for zero?
3. If I own the building under which COCO still has a multi-year lease, and I attach COCO's assets so that I can be paid in the event of default, do you think I'll take my losses willingly to help the shareholders get paid?
Etc. etc, etc. The list is endless.