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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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For-Profit EDU: Don’t Expect to See Any “Greenshoots” In the Space This Spring

April 23rd, 2014

Here we are on the eve of another earning season in the for-profit education space and it appears that all of the challenging trends the group faced for the Winter term still remained firmly entrenched during the Spring enrollment...

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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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Current Ideas

AYI

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$129

RON.TO

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$9

BIG

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$28

ESI

SHORT

$0

DV

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$15

BGG

PAIR - LONG BGG/SHORT TTC

25%

TTC

PAIR - LONG BGG/SHORT TTC

25%

Z

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$14.00

NA.TO

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$22

HCG.TO

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$20

ING.PA

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$35

ZU

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$15

TRLA

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$20

MCRS

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$31

APOL

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$35

OPEN

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$30

BCO

LONG

$35

WWE

LONG

$25

KNL

PAIR - LONG KNL/SHORT MLHR

25%

XOXO

LONG

$20

CSGP

SHORT

$100

GCA

LONG

$8

IPSU

LONG

$20

MLHR

SHORT

$22

ARC

LONG

$12.50

LOOP

PAIR - LONG CSGP/SHORT LOOP

40%

THQI

LONG

$35

WPO

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$275

COCO

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$0

HNI

SIG

RGR