This is a real possibility here.
Given the threat he now faces he may seriously consider taking the company private. It may be better to buy the outstanding stock in the open market than to try to convince the other 84% stockholders with a tender offer.
haha.. resentful anyone? I don't blame you. I wish I had sold when you did. I just read the moodys report. Although they downgraded the debt, it is not so bad. It actually reads a bit on the optimistic side noting the progress the company has made last year. I went through my spreadsheets and the numbers do look good. One way or the other, they did make progress. But now, they also have a competitive threat. Smulyan must have seen it coming... He owns 16% of the stock and controls 61% of the voting power according to moodys. They continue to rate the debt as stable with enough ebitda as cushion.
What Mcaplan and Brian said. Own this stock and you are married to that pig. Maybe they get lucky and they get money from the debacle in western Europe? Or the judge does away with the preferreds?
The lesson here is, if someone shows up claiming they own 2% or 3% of an illiquid company like longtimefollower did, run for the hills. Because, then you will a permanent seller for months.
Could also be a cigar butt. In spite of ceo. Look at sales, ebit, ebitda, gross margins, etc. in the last 4 to 6 quarters.
Smyulan is a savvy business operator. Looking at some of the assets, including the print side in small towns and profitable specialized printing pamphlets you would think the guy has a great eye on what is valuable in radio and print. Some rare items that may even have a bit of a moat and are cash cows.
Not surprisingly, they have good ebitda and even after the recent big boy hit Smyulan has been able to present an attack plan and work the numbers in a way that ebitda will remain little changed. I bet JPM will like that and give the guy another chance. But, then there are the big time f*c ups. Like with commons shareholders. Noone believes he is aligned with them when all mgt does is ring the stock options register. Or the preferreds fiasco. Or the deals that went sour in western Europe. I bet even bankers don't like him as he may not be bringing in enough fee and noone will back the stock or run with it.
Only them pocketing money. They are content with the money they get from operations. And then, when bored, they milk the markets.
It's not the end of the world for them. They have good assets in good locations. Problem is management, specifically Smuylan. They make it sound like they work for the team and the shareholders when in reality they have been squeezing every possible penny out their stock options. Then, they have the bool #$%$ conference calls. They are not really for the shareholder. Otherwise, this would be trading north of $2.50. Then, they had some poor, late-to-the-party initiatives. But problem here is Smuylan.
On April 29 it will be decided if JPM grants them more room in the covenants they seek to change. If they get to change covenants shares could see a pop.
Still unfriendly. But he took more questions this time. Smuylan could be lying but he said he was extremely confident about the preferred shares lawsuit. He also opened the door for a settlement. The notable difference in recent times is that they partnered with ubiquity for nextradio and they were together in a stand in an industry show. Not a game changer but gave some credence to their efforts. I am unsure about this stock and also about management. I guess I should not own it. It is sad it did not get any demand after a good cc. Perhaps, it is in a wallstreet blacklist.
I am pretty sure it was CMLS. Take a look. Missed earnings and crashed and brought all radio plays with it. EMMS should recover. Problem is that it is highly illiquid so we have to wait for buyers.
I thought he already did. Long time ago. And was probably due to some political conflict of interest (wife).
You must consider the bigger picture here. With a lot more disposable income (household debt service ratio is at a record low 1982), more job opportunities in the pipeline and a lot less for-prof offering due to companies going under (coco) the pie is actually growing here. There will be a market for the "free" -if it ever happens- and the "for profit" that remain will still do well.
Think about "reputation". Once the word "free" is attached to any community college degree there goes reputation. Meanwhile, ceco builds upon greater and greater benchmarks no community college will ever have. Those paying or who have been paying for their education will have greater incentives not to be associated with a free degree. Free is not bad, but may be targeted to specific crowds for specific purposes.
How is this going to pass Congress? In the meantime, ceco is becoming profitable and focusing in their university segment letting go arts and culinary. All good for ceco in 2015 and beyond. Your reading is superficial.
Being the best brand is not the critical aspect of this divestiture. CEO already said in numerous occasion the art schools have issues and he will be trying to get rid of them. They are the weak link in spite of branding.
Most likely, they have issues with compliance which will hurt the universities/colleges which will be driving most revenue/growth down the road. I hope they use the money for a) buy back stock which is cheap, b) expand online education because it is the future.
It was coming. CEO had some negative words for the art and culinary schools... I think the issue was mostly compliance. Smaller company, tightly run, much more profitable.
The letter sent by OXF to unitholders said at some point that stock appreciated and it was proof that the deal with Westmoreland was a good one. So where is the stock appreciation?? Looks to me that the move to $1.22 last month was just the investment bankers supporting the price to delude us into thinking the deal with wmb is great. Now, that they may have enough votes secured all I see is selling.
Looks like ceco sold assets in 2013 to fund their turnaround. If ebitda positive next quarter they should continue their turnaround strategy without problems. Including continuing taking students from coco, as ceo mentioned in last call.
What are you talking about?
Company will be ebitda positive next quarter and throughout 2015. Turnaround on schedule.