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COCO - Corinthian Colleges Inc


BargainValueHunter

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Oh, I'm not buying COCO. Hell I'm not even looking at it. I'm looking for best of breed here, not the remnants of a less-than-average crapper. If you look a little bit, you'll find the one I'm getting pretty excited about. Trading for peanuts, high return business,  brass compensation is equity and option heavy. All the ingredients are there, how could I not see value?

 

I don't concern myself too much with speculation about where this industry may or may not go. I'll sleep pretty well at night if it doesn't work out. I'm expecting duds here and there, that's what running a relatively diversified book is for. If things worked out 100% of the time nothing would get cheap to begin with. A downtrodden industry at maximum levels of pessimism is the ultimate source of value, because it's the hardest source to stomach.

 

Nit value guys seek comfort in buying good businesses when everything is going well justifying a high price as fair. The really sharp and dedicated ones look for things that are complicated or out of sight, figuring out things that are both amazing and insanely cheap and may not have any issues beyond being hard to understand or uncover (these are the kind I have most respect for, but I'm never going to be good or dedicated enough to do this).

 

I'm the third kind of value guy. I sprint to the battlefield with a few missing teeth and scars yelling HULULULULULU with a smile on my face, looking forward to my reward in Valhalla. The original kind of value guy, that most people who even call themselves value guys don't seem to like being. Who has the grit to march forward when everybody backs down. The simple but hard kind. That's the most fun part to me.

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  • 8 months later...

OH SNAP!

 

Looks like I'm right again!

 

COCO just disclosed it is facing a criminal investigation by federal prosecutors.

 

Management's new focus is going to be staying out of jail....

 

Looks like COCO got into big trouble with the Feds today...

 

Heald colleges will have $30MM of fines imposed.  They are also ordered to wind down.

 

https://www.insidehighered.com/news/2015/04/15/us-fines-corinthian-colleges-30-million-and-effectively-closes-heald-chain

 

My guess is that the criminal indictments and prosecution comes next....

 

I very much doubt that common shareholders will get anything in the end.

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