Over the past 48 hours a significant change has occurred in the operating landscape for proprietary higher education institutions. While most investors and sell-side analysts debate the eventual outcome of the Department of Education's "gainful employment" proposal,...
READ MORE >ESI reported 1Q10 results this morning that topped PAA Research and consensus expectations. You can read the full release here. Here are the quick highlights: Revenues and EPS of $384.0 million and $2.46 beat consensus...
READ MORE >In the for-profit postsecondary education sector, controversy never dies and it seems like trading opportunities are omnipresent. After a one-month period during which news flow within the industry slowed to a...
READ MORE >Earlier this week, the Accrediting Council for Independent Colleges and Schools (ACICS) finally released its Key Operating Statistics report for FY09 (6/30/09). You can find the full report here. The report includes a comprehensive...
READ MORE >This report was originally published on 2/21/10.ESI released its annual 10-K filing on Friday. We wanted to provide you with a few key observations and revisit some of the original tenets of our...
READ MORE >This report was originally published on 1/26/10.We recently conducted a survey of privately-held for-profit postsecondary education institutions. Our goal was to gain a better understanding of...
READ MORE >This report was originally published on 1/21/10.ESI reported 4Q09 results this morning. You can read the full press releasehere. Overall we would characterize the results as a solid beat relative to...
READ MORE >This report was originally published on 1/19/10.ESI will report 4Q09 results on Thursday, before the market opens. Here are the issues which we expect to be at the forefront of investor concerns heading into and subsequent to the company’s earnings...
READ MORE >This report was published on 12/17/09.The education stocks are trading off today following the release of a memorandum from the Department of Education’s Office of Inspector General (OIG). You can find the memorandumhere. ...
READ MORE >This report was originally published on 12/14/09.The Department of Education released unofficial 3-year cohort default rate data this morning. You can find the DOE’s press release here, which also...
READ MORE >This report was originally published on 12/9/09.We have expressed our concerns in the past about the impact the transition from a 2-year to a 3-year cohort default rate calculation could have on the...
READ MORE >This report was originally published 12/1/09.The U.S. Department of Education (DOE) distributed its first round of proposals to the negotiated rulemaking panel on Monday on Program Integrity Issues...
READ MORE >This report was originally published 10/28/09.Readers of our research know that we have been bearish on the for-profit education sector for the past few quarters based on our concerns about growing...
READ MORE >ESI reported 3Q09 result this morning. You can find the release here. Overall the company beat by approximately $5 million on the topline and $0.03 on the bottomline. Here are our quick...
READ MORE >This report was originally published 10/21/09.ESI reports 3Q09 earnings and fall term enrollments Thursday morning. In general, we have discussed at great length our concerns about what we view as structural issues with the...
READ MORE >This report was originally published 10/14/09.A hearing was held today by the House Committee on Education and Labor entitled: “Ensuring Student Eligibility Requirements for Federal Aid”. You...
READ MORE >This report was originally published on 9/22/09.For those of you that have followed our research since inception, you are probably intimately familiar with our concerns about the for-profit education...
READ MORE >This report was originally published on 9/15/09.Yesterday, the Department of Education released student loan cohort default rate data for the 2007 fiscal year. Overall, the national student loan cohort default rate (CDR) increased from 5.2% to 6.7%. As we...
READ MORE >This report was originally published on 9/11/09.On Monday or Tuesday of next week, the Department of Education will release final cohort default data for FY07. Before we get into company specific discussions, we wanted...
READ MORE >This report was originally published on 7/23/09.ESI reported 2Q09 results this morning. You can get all of the details here. Overall the company reported bigger upside to consensus estimates than we expected ($317.1MM and $1.87...
READ MORE >This report was originally published 7/22/09We wanted to highlight a few details from Sallie Mae (SLM 12.21 ↓0.65%)’s earnings release last night and subsequent conference call that we think...
READ MORE >This report was originally published on 7/5/09.In our original post on ITT Educational Services, Inc., we argued that the company’s business model was structurally broken because it was no longer clear that students earned a...
READ MORE >This report was originally published on 6/11/09.One of the more remarkable aspects of the U.S. higher education system over the past two decades has been the relative inelasticity of demand in...
READ MORE >This report was originally published on 5/22/09.U.S. News and World Report published an article yesterday which highlighted a new report that outlines the characteristics of student loan borrowers with excessive debt....
READ MORE >This report was originally published on 4/23/09ESI reported strong 1Q09 enrollment, revenue and EPS. The company repurchased stock. They raised guidance by approximately $0.50, on the heels of an...
READ MORE >This report was originally published on 4/21/09.The leading for-profit postsecondary education providers APOL, CECO, COCO, DV, ESI, STRA all sold off in excess of 5% today following a series of...
READ MORE >SELL/SHORT
$4
SELL
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SELL/SHORT
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SELL/SHORT
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SELL/SHORT
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LONG
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SELL/SHORT
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SELL/SHORT
$50
LONG
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SHORT
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SHORT
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LONG
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LONG
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PAIR TRADE
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PAIR TRADE
$30
LONG
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SHORT
$35
SELL/SHORT
$10
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$101
SHORT
$15
SHORT
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SHORT
$9
SHORT
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PAIR - LONG BGG/SHORT TTC
25%
PAIR - LONG BGG/SHORT TTC
25%
SHORT
$14.00
SHORT
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SHORT
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SHORT
$30
PAIR - LONG KNL/SHORT MLHR
25%
SHORT
$100
LONG
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LONG
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PAIR - LONG CSGP/SHORT LOOP
40%
LONG
$35
SHORT
$275
SHORT
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