Motley Fool has always pointed me in the right direction, I have no reason to doubt their opinion now.
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610 makes a good point. The only thing of value would have been the brain trust of the schools, in case you forgot, that would be the faculty. Unfortunately, EDMC and Art Institutes burned that bridge long ago. Difference of opinion are pushed out if they do not conform to the corporate mindset. Real schools embrace this as it stands as an example for students to question their established beliefs, to be open minded to new possibilities and just maybe go on to create new things. You want an example? Google professor Mike Tracy at OC Art Institute who was publicly fired for not forcing students to buy books for his class. The students supported him but ultimately fired for INSUBORDINATION! There is no tenure or long term faculty to speak of, they dont pay as well and they focus more on degrees even if they are unrelated to the subject over actual skills and expertise. What they have now is the equivalent of day laborers with official papers.
"Ai is going to be sold off piecemeal to reputable schools" Not a chance! This is a pipe dream. Reputable schools wont touch them with a 10 foot pole because as it turns out, reputation matters. The Art Institute has nothing of value. No media campaign is going to fix this either. Their "market driven" degrees were always a scam. Reputable schools are not offering fake degrees like i-Pad apps BS. Real art schools don't need tons of students, they usually turn 2/3rds of them away as it is. They know only the cream of the crop have any likelihood of surviving in the creative world, they are not gong to be interested in lowering the bar. Because guess what? Their main goal is NOT profit. So no, no one is going to buy a piece of your school because you never created anything of value in the first place. All you did was sell the sizzle.
If the AIs do get sold no one will buy them because of their tarnished rep especially AIW . That AI screwed over so many off my friends. Im glad I got out unharmed after a year when I came to the horrible realization it was a money pit. So many hard working people that completed their programs 100 grand in the hole and now working server jobs making minimum wage or under. No jobs in their fields, passed with A or Bs thinking that their portfolios where on par until 3 months after graduation they come to the horrid realization that they are extremely under qualified. Credits wont transfer, and if they could go to a real school, they've exhausted all their loans. And the teachers, the poor staff that were out of a job due to the layoffs was real sad to see too. None of this EDMC mess would be happening if they would have just given people their money's worth. But I guess greed can stop that.
Kindness, the real world is gonna eat you alive.... No iPhone fail here.
There seems to be a very negative outlook for EDMC- the stock is lower than 20 cents. If anyone or the market thought it was even a reasonable gamble the stock would be selling at a record rate. Considering an investment of $200.00 dollars would buy a 1000 shares the potential for getting wealthy is tremendous. Since investors are not willing to take even the slightest gamble on EDMC- the market has clearly spoken.
I don't know, my portfolio has done rather well following motley fool. Numbers don't lie.
Both of you are absolutely correct. BMC is scrapped at this point, Ai is going to be sold off piecemeal to reputable schools, Argosy will merge their few profitable campuses with South, and KKR will sell the only remaining school worth anything to a buyer. Maybe even work out a deal for John South to take it private again and keep it in his family. Online for all brands is about to be scrapped since they are the worst at gainful employment. Why do you think MG and company have been walking around with their stink faces on. They know it's coming and there is nothing for once that they can do about it.
- Your Friend,y CS Insider
@406, This I beleive...
Its going to be a slow death for all schools but South U. South U. will get sold a some point down the road so KKR can recoup their money.
Its going to be a slow death for all schools but South U. South U. will get sold a some point down the road so KKR can recoup their money.
Every time someone post outside financial news about EDMC you get the corporate naysayers chiming in here attacking the source instead of debating the facts. Of coarse like all EDMC management, you have to live in an alternate reality to work there in the first place so its no surprise they are always proven to be wrong. EDMC is done, over, finished, kaput, finito! Karma says goodbye and good riddance.
Facts don't lie.
Motley fool is not exactly the most credible ....been watching them for years..
July 1 is the new fiscal year and it well could be the last for EDMC. Sad for students and the many people who want to do right by them.
Full link: http://www.fool.com/investing/general/2015/06/09/stocks-to-watch-in-for-profit-colleges.aspx