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...
READ MORE >“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...
READ MORE >We’re thinking of a for-profit education company that operates a large national university with a strong presence in nursing, a big online platform, and a heavy mix of bachelor’s degree students that also owns a group of international universities. Can you guess...
READ MORE >This report is a follow up to our note published 3/10/15 in which we introduced Home Capital Group (HCG.TO), National Bank of Canada (NA.TO), and Rona Inc. (RON.TO) as short ideas.“Get busy with...
READ MORE >“Get busy with the facts, No zodiacs or almanacs, No maniacs in polyester slacks, Just the facts…. The small gets big, It’s a rig…. You better run homeboy, A fact’s a fact… Roll the...
READ MORE >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,...
READ MORE >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%...
READ MORE >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...
READ MORE >“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...
READ MORE >This oft quoted aphorism (incorrectly attributed to Twain) represents one of the greatest truisms for any seasoned investor: the ability to identify trends and map them to historical patterns is a...
READ MORE >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%...
READ MORE >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...
READ MORE >For several years now we have argued that ESI needed to raise capital to position the company to meet its contingent liabilities related to guarantee payments on private student loan portfolios and...
READ MORE >“In the process of taking his jacket off, the Artiste [Harry Zale] thrust his thick chest forward. Running down it were a pair of suspenders. They were broad and black, these suspenders, and even at the other end of...
READ MORE >“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...
READ MORE >In a surprise to no one at this point, ESI disclosed in an 8-K filing yesterday that the company’s Audit Committee in concert with the SEC Office of the Chief Accountant determined that the...
READ MORE >Rather than give you our usual initial diatribe, we’re going to present you with some quotes from ESI management over the past few years...
READ MORE >After the close today, ESI announced that the company has reached an agreement with College Portfolio Buyer LLC for a sale leaseback transaction. College Portfolio Buyer will purchase 24 ITT Tech locations for approximately...
READ MORE >For more than a year now, we have been arguing that ESI might need to raise capital to shore up its liquidity position in light of the company’s deteriorating operating fundamentals and...
READ MORE >It what has become standard practice for ESI, the company filed an 8-K last Friday after the market close which delivered more unfavorable news. If bulls are to be believed the latest development...
READ MORE >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...
READ MORE >Really, who would trust this management team? The current management team of ESI has been wrong on almost every front over the past 3-4 years whether it be: student start prospects, market clearing tuition levels, or actual...
READ MORE >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...
READ MORE >“On the cost reduction efforts….As far as opportunities going forward there aren't a ton of opportunities right now, so we're not throwing another target out there, we're not throwing another bogey out there right now.” 10/24/13 Kevin Modany,...
READ MORE >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...
READ MORE >Only in this environment might some people view an 10% move in a stock as a “relief”, but that is certainly how we feel today with ESI. That’s not to say our conviction in our short thesis has wavered in any...
READ MORE >“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...
READ MORE >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...
READ MORE >In a vacuum, there might be legitimate cause for excitement. After 11 consecutive quarters during which ESI reported a YOY decline in new student starts the company was finally able to identify an elixir to its enrollment woes – aggressive tuition discounting...
READ MORE >“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...
READ MORE >LONG
$70
SELL/SHORT
$4
SELL
$50
SELL/SHORT
$45
SHORT
$18
SELL/SHORT
$5
SELL/SHORT
$42
LONG
$75
SELL/SHORT
$50
SELL/SHORT
$50
LONG
$5.50
SHORT
$50
SHORT
$28
LONG
$65
LONG
$37
PAIR TRADE
$10
PAIR TRADE
$30
LONG
$35
SHORT
$35
SELL/SHORT
$10
SHORT
$101
SHORT
$15
SHORT
$0
SHORT
$9
SHORT
$0
PAIR - LONG BGG/SHORT TTC
25%
PAIR - LONG BGG/SHORT TTC
25%
SHORT
$14.00
SHORT
$22
SHORT
$15
SHORT
$20
SHORT
$31
SHORT
$35
SHORT
$30
PAIR - LONG KNL/SHORT MLHR
25%
SHORT
$100
LONG
$8
LONG
$20
SHORT
$22
PAIR - LONG CSGP/SHORT LOOP
40%
LONG
$35
SHORT
$275
SHORT
$0