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How about this for a sell-off?

August 20th, 2010 · 1 Comment


The sell-off here is really momentous. (note that this chart self-updates, so you’ll have to keep its Aug 20 price of $4.5 in mind). We have a feeling this will correct, it’s priced like its whole business model is gone down the drain, which seems excessive to us..

For now, we’re merely noticing it, we’ll get back to it. The company is in the education business and experiencing some problems:

  • It missed earnings by a fraction
  • Defaults on student loans are up
  • As a result of that, it is accepting less student enrolment, leading to a 6% reduced 2011 revenue guidance (in the cc)
  • There are regulatory worries

But is that enough to explain this mother of all sell-off’s?? It seems like the wholesale destruction of it’s business model is being priced in..

Here are some perspectives:

Tags: COCO · Technical Trading Ideas

1 response so far ↓

  • 1 One is doing very well.. — // Sep 19, 2010 at 5:15 pm

    […] Corinthian Colleges Inc. (COCO) went on a slide that seemed to suggest it had no longer a viable business. While things didn’t look great, it seemed exaggerated to us and we told you so on August 20. […]