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ESI: Closing Out ESI Short Idea with a 100% Gain; Let the Record Show that the Blame for ESI’s Demise Lies with...

September 23rd, 2016

“How did you go bankrupt? Two ways. Gradually, then suddenly” Ernest Hemingway, The Sun Also Rises ITT Educational Services ceased to exist as of September 16th.  The...

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ESI: As EBITDA Generation Dwindles, The Cash Wind-down Begins in Earnest

April 21st, 2016

ESI shares traded higher after hours based on the company's long awaited 4Q15 operating results.  It appears some investors are emboldened by the earnings upside in 4Q15 despite continued weakness in student...

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ESI: Department of Education Letter Suggests Liquidity Woes Could Accelerate – The End Game Is Nigh

October 19th, 2015

In a letter released today, the Department of Education informed ESI that the company will be placed on a form of delayed disbursement of Title IV funds and become subject to even more stringent reporting requirements...

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ESI: Was That the Final Goodbye? We’ve Reached the Point of No Return – ESI Might Not Survive Beyond the Next 6-9...

July 30th, 2015

Following a conference call that sounded 50% like a deposition and 50% like an advertisement (it was 100% strange), we can’t help but wonder if this could be the last time we might here from ESI...

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ESI: A Grand Exercise in Greater Fool Theory as the March to Zero Continues

June 2nd, 2015

It’s as if the SEC never filed suit against ESI, the CEO, and the CFO….The 100%+ rally in shares of ESI over the past three trading days has been truly something to behold.  The stock has been acting like the typical villain in a horror...

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ESI: The ZERO Scenario Is Finally Here and the For-Profit Education Space Might Never Be the Same

May 12th, 2015

“You shouldn’t talk to that guy, he’s a liar”You might be thinking that’s a quote from someone talking about Kevin Modany, but in fact this is a quote FROM Kevin Modany which was said to a reporter when he was...

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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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ESI: The Lender of Last Resort Comes a Knockin’; The Stock RALLIES 30%+ Even As Bankruptcy Risk Increases, Follow the...

December 5th, 2014

“On November 17, 2014, we obtained a commitment from Cerberus Business Finance, LLC to provide us with a new $100 million senior secured term loan facility”-          ESI 2Q14 10-Q...

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ESI: A Temporary Reprieve from, but Likely Not a Full Resolution of the Company’s Liquidity Woes

October 17th, 2014

There’s a well-known adage in this business that the “highs are never as high as the lows are low”.  No truer statement could be made about our feelings on our short call on ESI today even with ESI shares down 72%...

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ESI: All That Matters Are Starts and Cash, Both of Which Appear to Be In Increasingly Short Supply; ESI Needs to Raise...

October 16th, 2014

From our perspective, the long awaited filing of ESI’s 2013 10-K was as notable for what was NOT in the document as for what was.  After all, at this stage the only two data points that truly...

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