Is that the reason Bank of America gave to drop them? Because they would not take live CC: that is not scripted? Is this the reason it is tanking another -10% today?
So, there is no analyst writing anything to promote the company. Can you do so?
Why don't you write something to help your cause about ESI? Posting here is worthless as only 5 or so people read it and we are all addicted gamblers.
"By the way, Bigfoot was the only attendee at the ESI CC. He's holding Modany and Fitzpatrick hostage for the SEC. Less"
what does that sentence mean? Can you explain in English?
God hope so.
Why don't you write an article to say what you think is worth? That is, say something positive as a counteraction to the extensively written and researched Seeking Alpha. Can you do something for ESI and submit? Think of all the time you spend on this board and writing but it is a waste of time.
But, if you write an article for Seeking Alpha to submit, it will be beneficial.
It could be bad if they lost more students....I wonder why it is taking so long?
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Let's not forget that these are all just allegations. Which the ITT tech plans on refuting them aggressively. The stock has sold off previously and I think that all the negative publicity has left an extremely under valued company. Yes I admire Maybe it's not the best stock to hold for 10 years however I like its upside potential in the near future. Any positive news and the stock will immediately shoot up 100% plus. which very well could be coming in the next week or two when ITT files there late forms. Let's not forget this company generates a billion dollars in revenue a year and their cash to debt levels are respectable and don't show any signs of bankruptcy. plus they have the opportunity to liquidate all their assests (worst case scenario)(real estate, cash flows) maybe they sell to a more stable company? My conclusion is that the stock is oversold and people who are shorting the stock now are taking a phenomenal risk. Look at their assests vs debt and divide by the shares outstanding.
No buying interest.
Let's see who is the best predictor at the end of the day.
When you know there will be a big sell-off
Netwall , Contributor
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Max Vision, Agree that ESI is in precarious position but your thesis of bankruptcy are far fetched. For one, the tone of the SEC complaint is more personal towards two officers of the company. Company can distance itself from these two execs claiming it has 10,000+ fine individuals working for it. The company has not been stealing money from federal govt., its just that it did not provide complete disclosures, hence misleading of parties involved (investors, auditors, regulators etc). I am not saying this is a casual thing to do for a public corporation, what I am saying is that it is not an FBI raid situation where company was stealing money from Dept of Education and will be shut down tomorrow.
Having $200M in its coffers won't hurt either. Company can drag this on for a while, claiming the same argument above that you can't penalize whole company plus its students, for actions of two individuals.
Again to be clear, I am NOt touting a long thesis here. All I am saying is that even if ESI were to become bankrupt, it will take time and will not be immediate as your article suggests.
This article came out 2 weeks ago. How would you argue?
Why ITT Educational Services' Equity Is Worthless
Must Read | May 19, 2015 11:12 AM ET | 50 comments | About: ITT Educational Services Inc. (ESI), Includes: COCOQ
Subscribers to SA PRO had an early look at this article. Learn more about PRO »
Disclosure: The author is short ESI. (More...)
Recent SEC fraud charges detail how ITT hid massive off-balance sheet liabilities.
ITT's business continues to decline.
Cerberus stands ready to wipe out equity holders and profit from the remaining assets.
ESI will play out as COCOQ or EDMC have over the past two years.
Why ESI's Equity is Worthless:
The equity of ITT Educational (NYSE:ESI) is worthless. The stock still trades and may do so for the near future, but what we have here is a Dead Company Walking (see excellent book by Scott Fearon). What follows is my description of the background leading up to the present day situation regarding ITT's descent into bankruptcy and the potential triggers for its eventual collapse.
why are you sticking around for this disaster? i am totally surprised there is no pre-market bid or ask by anyone. You are right this can just plummet at the open. All the pumpers totally disappeared; the ones that said $8-9 after conference call.
And, the company still has not published their 10Q for the 1st quarter and their deadline is June 15.
What I don't understand is this: back at end of April it was ABOVE $6 with no 10K or 2014 yearly statement. But now they have it out and 2014 was profitable and they have some $220 million in cash or short-term, I am surprised this is only $100 million or so in market cap.
I didn't realize how bad these posters are. They actually don't know anything at all but pretend to be. At least you admit you are guessing.
Take a look at ths MPHIL909 guy who posted saying he read an article yesterday. I asked for a link or title of article and he just said GOOGLE "Career Colleges COCO." That is just a vague search and it took me a couple of hours to realize he was reading an article from 2010! And, he has no clue that COCO (Corinthian Colleges) declared bankruptcy on May 9th and has stopped trading. This guy is quoting a 5 year old article and fooling people when he says analysts project 17% growth for ESI.
mphil909 • 4 hours ago Flag
According to the news letter in career college central reviewing coco earnings today, analyst project over 17% growth for ESI, and over 20% for DV. This is a value play for sure, glad I bought this dip.
mphil909 • 4 hours ago Flag
Google Career Colleges COCO