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COCO: Closing Out COCO Short Idea with 99.9% Gain, 176.1% Alpha Generation

February 17th, 2015

COCO shares were delisted from the NASDAQ today.  We are closing out our COCO short idea with a 99.9% ABSOLUTE gain and 176.1% alpha generation.  It is our goal to identify short ideas that have 100% absolute return potential.  Obviously,...

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ESI: The COCO Student Loan Forgiveness Precedent Is Not a Good One for ESI

February 3rd, 2015

ESI shares traded up 20%+ today in reaction to the completion of COCO's asset sale to ECMC and the announcement that loan forgiveness on COCO's Genesis loan program will be 40% of principal.  There are some that want to interpret the 40%...

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For-Profit EDU: A Few Thoughts on Obama’s Free Community College Initiative

January 9th, 2015

Sorry we didn't pass along some feedback sooner, but we wanted to share a few key data points and thoughts on Obama's proposal to make community college free for students that maintain a 2.5 GPA.  The program is largely modeled on one...

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For-Profit EDU: The Career College Crisis of Summer 2014; Checks Suggest Continued Weakness in Fundamentals – Where...

July 28th, 2014

“The cheaters usually get caught--just never soon enough. Plenty more heads will roll.” Anonymous executive in the for-profit education space Given our longstanding bearish stance on...

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COCO: The Reasons Why We Think COCO Could Have a Significant Liquidity Crisis over the Next 6-12 Months

February 5th, 2014

In many respects, we are stunned that COCO shares did not trade down more today.  Let’s consider what “new” information we learned as a result of the company’s earnings release: 1) starts trends are...

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For-Profit EDU: The Hope for Hope Trade Could Be Coming To an End as Winter Term Enrollment Results Bring a Cold Dose...

January 29th, 2014

The for-profit postsecondary education sector has been a “contrarian’s delight” for the better part of 12-months.  Initially what started as a long trade predicated on overly bearish sentiment...

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COCO: What Will Happen First? Evaluating Key Catalysts as the Company’s Options Appear More and More Limited

November 5th, 2013

Tick, tick, tick…..  From where we sit, it certainly feels like the walls are closing in on COCO as the company’s weak enrollment results, shrinking EBITDA generation, tenuous liquidity position, and...

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For-Profit EDU: The Stocks Have Been Telling Us For the Past 6-Months That the Fall Term Enrollment Intake Would...

October 22nd, 2013

“It’s real the pain you feel, you trust, you must confess Is someone getting the best, the best, the best of you?”-          Foo FightersOften wrong, never in doubt…. If we could use...

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COCO: Hanging on By a Thread While the Challenges Continue to Mount

August 29th, 2013

We watched the stock price action in COCO over the past two weeks with considerable befuddlement and consternation. After all, the stock rallied more than 25% following the announcement that the Department of Education had preliminarily sided with the...

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For-Profit EDU: Just When You Think You Have All of the Answers, We Change the Questions; Feedback from Privately Held...

July 24th, 2013

“And you all know how the story go….Not bad meaning bad but bad meaning good…”-          Run-DMCWith all due respect to Monsieurs Simmons, McDaniels, and Mizell we doubt that they...

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Current Ideas

EXPI

SELL/SHORT

$4

HUSQ.B

SELL

$50

UFPI

SELL/SHORT

$45

TREX

SHORT

$18

PRDO

SELL/SHORT

$5

STRA

SELL/SHORT

$42

CWH

LONG

$75

OSTK

LONG

$128

CM

SELL/SHORT

$50

RY

SELL/SHORT

$50

ARC

LONG

$5.50

AYI

SHORT

$50

BIG

SHORT

$28

WWE

LONG

$65

XOXO

LONG

$37

RLGY

PAIR TRADE

$10

RDFN

PAIR TRADE

$30

BCO

LONG

$35

ING.PA

SHORT

$35

TRUP

SELL/SHORT

$10

CTC

SHORT

$101

ATGE

SHORT

$15

HCG.TO

SHORT

$0

RON.TO

SHORT

$9

ESI

SHORT

$0

BGG

PAIR - LONG BGG/SHORT TTC

25%

TTC

PAIR - LONG BGG/SHORT TTC

25%

Z

SHORT

$14.00

NA.TO

SHORT

$22

ZU

SHORT

$15

TRLA

SHORT

$20

MCRS

SHORT

$31

APOL

SHORT

$35

OPEN

SHORT

$30

KNL

PAIR - LONG KNL/SHORT MLHR

25%

CSGP

SHORT

$100

GCA

LONG

$8

IPSU

LONG

$20

MLHR

SHORT

$22

LOOP

PAIR - LONG CSGP/SHORT LOOP

40%

THQI

LONG

$35

WPO

SHORT

$275

COCO

SHORT

$0

HNI

SIG

RGR