Getting in bed with Goldman was the major strategic mistake, they pushed us to be more aggressive as it relates to pretty much all things considered, our regard for students dropped and it started to be all about money at that point. It was a good cash flow that attracted the leaches, and now they will suck us dry
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@Anonymous36771, you may be right--but it may take time before all this plays out at EDMC. But where is my analyis wrong? I never said that all EDMC schools would close. In fact, I said that it would be difficult to imagine all of the Art Institutes or the law school closing. I also said that Goldman Sachs still has a large degree of power (to the point that they can manipulate the stock price). Furthermore, didn't say that EDMC might not go go private at some point. What I have said is that the current business model is unsustainable and that workers should be prepared for a major downsizing.
Why did they sell themselves out to Goldman in the first place? Weren't they doing well in 2004? It was a big move for the company back then. Who thought that would be a good idea?
Camden has good intentions (as it relates to students) but he's typically 95% off when it comes to financial analysis or anything that has to do with financials. we are slowly unwinding, goldman(s) have preferred stock and they will suck out whatever is the left first. we'll go private, some schools will close, some schools will sell. the gov will make a move, if they decide to withdraw all aid and loans, we are hosed.
"they can manipulate the price" as long as they don't want to cash out. It's easy to simply hold, but if EDMC does not produce good financial results, then holding results in lower returns, since the time is longer.
Guess the report really doesn't matter. All the bad news is out. EDMC has almost no stock value, but Goldman Sachs and Providence Equity own such a large stake that they can manipulate the price.
It's just a matter of time! You can run but you can't hide forever. Nothing is going to change over the next few weeks.
Anonymous36295- That's not right. The filer status is based on market capitalization after the second quarter, so that does not magically change later. Similarly with COCO, which has basically zero market capitalization at this point. Both must file by tomorrow, or file a NT 10-K by Tuesday.
http://www.sec.gov/rules/final/33-8644.pdf
No, we cannot expect to see them until September 28th. According to the SEC large accelerated filers profiting between $75 mill and above have 75 days to file after the fiscal year close for the 10-k. How ever, EDMC did something extremely slick and smart by filing the 8-k's and RW forms thus withdrawing them from this accelerated filing status. Non-accelerated filing companies have 90 days to submit their 10-k's which now extends the release date until September 28. This can all be found on SEC.gov and search for 10-k. I hope that helps but would you expect anything else from EDMC at this point.