“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...
READ MORE >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...
READ MORE >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...
READ MORE >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...
READ MORE >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 >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 >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 >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...
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 >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 >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 >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 >Earlier this week, the American Arbitration Association ruled on a dispute between a former student of CECO’s California School of Culinary Arts (since rebranded the Le Cordon Bleu College of...
READ MORE >In a move that received little fanfare this past February, ESI’s board of directors established a short term element to the company’s compensation policy for senior management that could be payable in...
READ MORE >How much are 400-600 ITT Tech students worth? In a report in which we will outline some of the critical questions surrounding ESI, this is the question we have been pondering all day. Afterall, it...
READ MORE >We have little doubt that among the kernels of information included in ESI’s 2012 10-K filing that the disclosure of the subpoena from the SEC will receive the greatest attention – as it should. However, for anyone who has followed the...
READ MORE >SELL/SHORT
$230
SELL/SHORT
$55
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