How long before the case goes to court and it is decided? What do you think is probability are found guilty?
The charges were filed against its chief executive officer, Kevin Modany and its chief financial officer, Daniel Fitzpatrick in the U.S. District Court for the Southern District of Indiana. The SEC claimed that the post-secondary education company concealed its actual financial status from its investors.
The SEC claimed that when the private student loan market collapsed, ITT Educational offered two off-balance sheet student loan programs named “PEAKS” and “CUSO.” In order to convince investors to finance these high-risk loans, the company offered a guarantee of limited risk of loss from the loan pools.
However, by 2012, these two loan programs had performed poorly and the guarantee obligations provided by ITT Educational Services were triggered. The education company was required to pay back hundreds of millions of dollars due to its guarantees.
In this connection, in the present press release, ITT Educational Services revealed that under its PEAKS loan program, the company expects to pay $29.8 million in 2015; $4.3 million in 2016; and $15.3 million in 2020. Under the CUSO program, the company expects to pay $14.4 million in 2015, $15.9 million in 2016, $17.6 million in 2017 and $78.7 million in 2018 and later. Total estimated payments under the CUSO program is $126.7 million over the years.
The education company also revealed that its composite score based on fiscal 2014 results is above 2.0. A composite score is an important financial responsibility measurement of the U.S. Department of Education (DoE). The DoE demands that an educational institution must have at least 1.5 score in order to be considered as financially responsible.
litigation will drag out for 2 years. 90% of the time nothing ever happens or small fine is negotiated and the executives are replaced. Same happens with the banks. just a slap on the wrist. You know this is a complex litigation matter that the jury won't comprehend fully.
Since you have been posting some time and seem to know the in-depth debt and payment situation ESI is in, I presume you have bought the stock at a much higher price, correct?
Why do you think the stock dropped so violently after the conference call? If you take the $6 and above during the conference call and now it is down -20%.....
Do you think it can turn green tomorrow or drop another 10-15%?
If back in April this was ABOVE $6 WITHOUT a 10Q fiiling and now they have it, why is this below $6? Shouldn't it be at least $6 or above?
what did you buy the stock at? How low do you think it falls tomorrow? Near $4? Any chance for it to go green?
not link. Just cut and paste what you have into message board here to save everyone time.
What is your LINKEDIN? Can't you just cut and paste in the message box here for people to read?
No it isn't. If the government cuts them out from the educational loan system due to the lawsuit by the SEC against the CEO and CFO, the entire business may be shut down. And, with enrollment down 15-18% since last year up to June, how can they meat their debt payments?
what is P/FCFF? Can you say in plain English for the rest of us instead of all acronyms so we have to guess?
Can you explain what you mean dirt cheap if their enrollment is down -15-18% compared to last year? How do they handle their debt load?
How much will it fall tomorrow is your guess?
Do you think think this is a good buy here? Or not? Someone who understands their financial situation and debt and not day traders who are just momentum gamblers, please.
January -April this was at $6-$10 without any 10k being released. Now that it is release, why is it at $4.70 instead of at least $6 again when there was no 10k?
what do you think happens tomorrow? how much will it collapse tomorrow?