Why am I not surprised, that davenport-mba didn't respond.
Anyone calling this a "strong buy" is out to lunch. A lot of your claims are TRUE...except the fact that Rouleau has failed in the most important area, and that is merchandising. NOTHING else really matters...or it only matters about 20%, anyway. UNLESS the new executive hires FIX the merchandising.
Sentiment: Strong Sell
They stopped taking live questions, several quarters back, after I "manhandled" them with intense questioning about the LA radio station that was being sold to the Mexican outfit. I fully suspect that was direct cause of their going to "written questions only."
I retain a modest position here....about 2% of portfolio. (At one time this was a 10%+ holding for me.) Right now, I'm a seller at $3.25-3.50, and a buyer at $2.65 and down. I didn't like all the insider selling at few months ago, in the $3's. They apparently knew things were going to be treading water for a while. This looks like dead money at $2.65-2.95.
Any purchases were done PRIOR to ED's action against the company. There have been no reports of any subsequent purchases. And I highly doubt there will be.
...tthe fact that he effectively destroyed Corinthian Colleges, through the sin of pride and hubris, and put them into (pending) bankruptcy.
That an executive would not sense, and would not FEEL, that "the end was near," and that he was "twisting in the wind," is the ultimate in incompetence and arrogance. Jack basically sent the message to the government that "we don't have to do anything you want"...and the government said, al contrair, Mr. Massimino.
Jack Massimino gets the ultimate booby prize....for reckless incompetence...and willfull blindness...and asinine contemptuous defiance.
To say "I know exactly what is coming" reveals your hubris, and grandiosity, in spades. Only ED knows exactly what is coming. Are you the Secretary of Education??
You are going to get your hat handed to you.
Thank you. Now, it would be nice if you would agree that it was very hard to see or know exactly when this game of musical chairs was going to stop. And that, if it continued for another year or more, COCO could have been a profitable "flip," buying the stock at $1.
I'm not a short. I'm a former long who lost his shirt, but got out within a day of the ED announcement effectively closing COCO down. Shareholders don't get treated nicely in what is effectively a government declaration of "game over." They are looking to PUNISH COCO management. Don't forget that.
You're living in the past. This doesn't matter any more, because entities looking to acquire COCO assets are more fearful than ever about the liabilities attached. The assets are going to go for a fire sale price, now. They are tarred and feathered, and buyers are FEARFUL. Unless COCO settles a ton of legal cases pronto, which seems highly unlikely.
DOE is certainly not "helping" the company. It is facilitating an "orderly wind down." That means shareholders are the LAST people DOE is concerned about.
They are basically, astonishingly, taking the assets AWAY from this sleazy management team, and saying "game over." The outcome of that process is very likely to involve 1) fire sales, and 2) outsized costs in the winding down process.
DOE, in my opinion, WANTS the shareholders of COCO to get nothing, and wants the remaining entity to go bankrupt....after all of the students are provided for. The reason they WANT that to happen is that they want to teach a lesson to similarly sleazy operators. To remind shareholder owners that if you get in bed with the devil, DOE will no longer just turn away its gaze, and hand over its money to you.
I can't believe the board didn't fire Jack, IMMEDIATELY upon this happenstance. It shows how feckless and cowardly they are. Although it wouldn't matter, at this point.
This is now my largest coal holding. I prefer it to ACI, now.
This is a spectacular intermediate to long term buy, imho. I agree with the Seeking Alpha article.
Buy it for the discount to book, and turnaround potential. Sell it for break even or better, a year or more from now, if things don't turn around.
This one is due for a major dead cat bounce....regardless of the near to intermediate term fundamentals. They have liquidity, so bankruptcy is NOT an issue for a good long while.
Sentiment: Strong Buy
To say you NEVER sell a stock you buy, for any reason, is the mark of an amateur. You HAVE to be willing to sell. If you can't change with the fundamentals, you will lose as much as you win in the stock market, and your returns will be BELOW average, or even negative. Curring losses is critically important. (Mind you, I am also a huge fan of averaging down....but only when I should. COCO being one case when I was mistaken in averaging down. But I turned on a dime, when ED announced they were ripping the rug out from under these stooges.)
You're in dreamland. The company said nothing about shareholders. They are in a FIRE SALE of assets, which will get much less than you say. And the wind down expenses will be extraordinary.
The stock is trading at 20 cents for a reason. My guess is there is less than a 10% chance that shareholders get anything. "The powers that be" have decided to drive a stake through the heart of COCO. That means that they "plan" on shareholders getting nothing....in order to "teach a lesson" to the "evil people" that were running this thing.....and to the other for profits.
I hope Masimino is charged with criminal fraud. Separately, I feel the company hid from investors, and downplayed the fact that ED was looking for very specific info, that the company was not providing. And WHY weren't they providing it. Isn't THAT a breach of fiduciary duty, in its own right? Ignoring the goverment, that supplies 85% of your revenues?
Basically, ED decided "You don't provide us with information when we ask for it, we close you down." If that is what they decided (that the clowns at the top of COCO will NEVER run a for profit college again, essentially), they are SEEKING to ensure that shareholders get nothing. And that WILL be the outcome here. This is not a good time to be selling these assets.
I didn't say i doubled down last week. I didn't say anything, nor shall i right now. Because i have nothing to say. Except that i think uptab is very savvy.
Nothing short of astonishing, really. Calls for all manner of superlatives.
The stock could easily trade for double the current price....and damn well should.
Sentiment: Strong Buy
It wasn't that "the book value didn't have value" with COCO....it's that the government decided it had had enough, and had state attorneys general breathing down its back, and decided to shut COCO down suddenly. That really fouls up any reasonable expected value scenario one had with COCO, because the game of musical chairs suddenly stops. I estimated the risk of the government doing such a thing as much lower than it was. I partly made that assumption based upon the fact that, last fall, the government "waived coco through" on the financial sustainability ratio, and did NOT require a posting of a letter of credit. Unfortunately, things changed drastically, since then, and "the powers that be," including, i believe, the POTUS himself, decided it was time to "make an example" of "the worst of the worst" of the for profit colleges. In restrospect, Leon Panetta getting on the board of COCO, and then off, 3 months later, may have been the canary in the coal mine.
Insiders would not be allowed to sell stock in the open market. They'd be thrown in jail.
I don't you've EVER been short this stock...or ever made a dime in the stock market in your life. Your just too busy lording over yourself. Goo'gooing and gaa'gaaing.