Exactly... they walked into this after the Wells notice with eyes wide open..... And furthermore, why would C David Brown, the chairman of a large law firm, and recent chmn of the Trustees at Univ of Florida join the board without these assurances?
The thing to focus on in the ucpcoming filings re: earnings is the operating income.. They have already telegraphed that this number in 1Q2015 is higher than 1Q2014.. The eps number will be full of nonrecurring charges..
Bravo, ditto. I had a negative net worth of 50,000 when I graduated from business school in 1981.
The whining everywhere is tiresome. This is an investment site people.
Agree. The SEC suit is more damning to the individuals than the company, but the company's response
in the 8k is strong and points to significant weaknesses in the case. The prayers for relief also focus on the individuals. Complex accounting cases are tough to prosecute....
Dangerous, yes-driven by emotion at this level. Incredible reaction to th SEC suit which was well telegraphed.
Focus on the facts in recent filings.
The key statement here is sustainable business model-it is possible . Senior management on the way out.
Strong new board members, especially most recent. They will deal with legacy issues appropriately and ESI will survive. It never should have had a 2Billion+ valuation and it shouldn't have a 75mm one . Both are extremes.
Good post. There is a frenzy of nonsense out there. No bankruptcy trigger. I qtr apparently improved despite lower revenues. This could be as good a company as DV with right management, and new board member an excellent start.
This suit changes nothing about the balance sheet. My guess is they are keeping them around to facilitate the filing of the financials. The SEC only handles civil matters. Does the DOJ go after these two guys? Unclear if their case is strong enough.
agree. It never should have had a 3bil mc and shouldn't have a 50mm one now. This new board member is a serious player with a strong educational background. I don't see what triggers a b/r filing. But I think asset sales are more likely than takeover. They are already dealing well with cost structure as evidenced by the nt10Q.
Agree. Look at the Relief section of complaint-focuses on the 2 officers. I think these 2 guys end up paying for most of the pain. The SEC doesn't want to go to trial on a complex accounting case. Look at Enron-they had to resort to insider trading charges.... The company's press release put some distance between the company
and the officers. New board member major asset for many reasons.
finally, some reasonble commentary. New blood can make this a legitimate company again. People have overlooked the fact that the Chmn of a major law firm, and recent Chm of the Board of University of Florida
just joined the board, obviously with all relevant facts.
They carry the loans at 60% of face and the liabilities at 100% under the new auditor. The hit has largely been taken to balance sheet. This suit does not change that.
If anyone was defrauded, it was shareholders or noteholders, not students.This has nothing to do with representations made to students.
Agree. Perhaps the only possible twist is if company throws these two guys under bus.