Thread regarding Corinthian Colleges Inc. layoffs

Corinthian Colleges: Tread Carefully

Without any idea as to the likelihood and timing of a turnaround, I'm really not a buyer at any price. At this point, the stock would be de-listed before it could get low enough for me to buy. As I said in my last article, I've been burned badly buying into 'potential turnarounds' before any indication of a turn based on valuation and contrarianism alone. Many successful turnaround stories are still cheap even after they begin to post improving results and hint at a turnaround. You may not get the lowest price waiting that long, but often you'll still get a very good one and you reduce the risk you are accepting greatly, even if you only wait for just one quarter of improvements.

This is a company that has been dealing with legal issues for years, been breakeven for years, continues to bleed students and revenues, and in a hated industry and tough operating environment. This stock could easily go to zero and even if it doesn't and things improve, you're only looking at a little more than a double for accepting all the risks and uncertainty and years of patience. Tread carefully.

seekingalpha.com/article/2005801-corinthian-colleges-tread-carefully

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