This is the third article I have read this week on the fall of Apollo Education Group......http://seekingalpha.com/article/2989166-apollo-education-group-soft-performance-keeps-short-sellers-around?source=email_rt_article_readmore&auth_param=a9tan:1afua6i:99d5f67404e4c8bfcfde16d74167be77&uprof=82.......A lesser known analyst, Taylor Mann, has written a 35-page analysis on for-profit colleges, concentrating on Apollo Group, that's even less flattering.
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I hate the new layout but am happy you're here, Camden Kid. I'll do whatever I can to help expose this place.
This company offers nothing of value...just a useless diploma at the end of the road. UOP will have fewer than 100K students by 2017.
No employer recognizes this school.
Those in enrollment need to stand up to the bully managers and tell them no more numbers talk then they should start looking for new jobs because this school is going to cut hundreds of jobs these next two years.
This bird is an ashen pile of dung and it ain't rising again.
Sell this stock as it will trade in the single digits by the end of next year.
Wait a minute--"securitization of toxic loans into bundled student loan asset-backed securities (SLABS), which have been graded as "Aaa" by Moody's." Doesn't this sound exactly like the rating agencies complicity in rating mortgage backed securities as AAA, even when it was clear they were rubbish? I am curious if anyone has examined how embedded these SLABS are in current financial instruments--and what the bursting of this bubble might cause. I doubt (hope) it would not be on the scale of MBS's, but have not seen numbers associated with student loan debt except how it has overtaken credit card debt.
Camden can you email it to dereknovak@mailismagic.com - please post a note once you've sent it. thanks
His short-term analysis is that the APOL stock price is overvalued by about $7 a share. His long-term analysis is that its profit-making capacity is unsustainable. You cannot cut your way into a better company without reforming the school. His analysis of the system is similar, and he drills into the securitization of toxic loans into bundled student loan asset-backed securities (SLABS), which have been graded as "Aaa" by Moody's. Mr. Mann uses University of Phoenix as an exemplar, but indicts other big for-profit schools, such as Devry's Ross Medical School.
What is the summary of it?
Not at this point. I've been getting Mr. Mann to get the document on a platform where people can download it. People can email me (with an alternative email) and I can send them the report.
Can you provide me with a cite and/or link to the Taylor Mann article? Thanks