No. of Recommendations: 1
My timing seems to have been pretty good. :-)

Some clarity to one of the overhanging issues -- a clearer definition of "gainful employment." All the for-profit colleges are up handily in pre-market trading this morning.

Was just looking at my expectations again, and at $27.19 (the latest pre-market quote), at 15% discount rate, priced-in expectations are 2.7% / 1.3% / 0% growth (5 years, next five years, terminal) off of $189 million ttm FCF.

Hardly messed-up on the high side, so I'll be holding for a while more.

Just talking things over with Charly Travers (of MDP) here in the office. He was pointing out that all of the for-profit colleges are pretty heavily shorted (an incredible 71.9% of the float is short) and with a price rise like today's is likely to be, a bunch of those are going to scramble to cover. Many were probably shorting the entire industry, indiscriminately. But note that the float for BPI is not very big compared to shares outstanding (65% insider ownership, actually). Why short something that has a huge chunk of shares owned by people who have a vested interest in seeing this company do well? Not too bright.

Note also that the rules are aimed specifically at for-profit colleges and ignore traditional universities, as did the GAO study referenced in my write up (which offends my scientific self because it was a poorly designed study with no controls to compare against). Quite politically driven and unbalanced.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.