Thread regarding Corinthian Colleges Inc. layoffs

CCI is closer to meltdown then most people realize. The enrollment went down from about 90K to 80K in a year. CCI's expectation is for an enrollment of 70K a year from today. That might be optimistic to say the least. Pretty quick you come to a "critical mass" such that the majority of your campuses become unprofitable. Campuses have FIXED costs which are independent of student enrollment. You can get a good handle on the VARIABLE costs being faculty and staff. Simply reduce the staff and faculty in accordance with enrollment. CCI is now LOSING money but still has about $40 million in the bank. The stock is about $2 a share and basically the only asset CCI has is its bank account. I don't know the cash liquidation value as a function of its shareprice. Let's assume its a $1.50 a share. If the stock price drops below that price then a savvy investor picks up a sufficient amount of shares and proceeds to cash out CCI