LouisDesyjr
10年前
Lights out?
It looks like there is a possibility that DV may be wiped out. One of the recent articles mentions that up to 50,000 students since 2008 may be in line for some sort of refund or forgiveness of student loans.
FTC Sues DeVry Education Over Allegedly Deceptive Ads:
http://ih.advfn.com/p.php?pid=nmona&article=70155475
DeVry Plunges As FTC Says School Lied About How Many Of Its Students Become Waiters And Bartenders:
http://www.zerohedge.com/news/2016-01-27/devry-plunges-ftc-says-school-lied-about-how-many-its-students-become-waiters-and-ba
On equity of 1.5 billion, if the refunds average $30K or more, it will wipe out equity, plus they would probably be prohibited from the student loan program, killing revenue. If this happens, I expect the whole process will play out over the course of a year, with DV maybe not being allowed any more federal student loans as early as Summer 2016.
While it is possible that DV could survive refunds, if they are not too much, a bigger problem could be that the school gets 'cut off' from the federal student loan programs. If that happens, then I expect DV will end up bankrupt like Corinthian college in May 2015. The end for them came the prior summer when the federal government would not allow them to have any more student loans.
Corinthian Colleges Files for Chapter 11 Bankruptcy:
http://www.wsj.com/articles/corinthian-colleges-files-for-chapter-11-bankruptcy-1430746291
I am expecting there is a good chance that DV will be prohibited from participating in the federal student loan programs, starting sometime this summer, Summer 2016. If that happens, then DV will be wiped out.
Louis J. Desy Jr.
Disclosure: I own August 2016 15 puts.
pointofreturn
12年前
This industry is really starting to heat up! At least on the Canadian side of the border. Let me introduce you to Loyalist Group Limited (US: LGLTF, CAN: LOY).
Loyalist owns and operates private English as a Second Language (ESL) schools across Canada, with a focus on Vancouver and Toronto. They offer ESL for international students, training programs for teaching ESL (TESL), career training courses, and corporate English for professionals. The business plan is to become the premiere consolidator of independent, privately owned and operated schools, in what is considered to be a large and extremely fragmented market. Substantial revenue and cost synergies can be realized quickly, thus making acquisitions highly accretive to earnings. Loyalist is well financed, having successfully completed 2 financings, raising over $15 million the past few months, and has good institutional and high-net worth investor support (billionaire entrepreneur, Seymour Schulich, holds 13,000,000 shares). Loyalist is in a very good position to continue executing its growth strategy given its experienced management team, economies of scale gained over time, and the lack of any other competition in the marketplace.
Loyalist could exit 2013 with a revenue run rate of ~$32.4M, EBITDA of ~$6.6M, cash of ~5M and fully diluted shares of ~132M.
Loyalist could exit 2014 with a revenue run rate of ~$80M, EBITDA of ~$15M, and no need for further dilution.
THREE-MONTH PRICE TARGET: $1.00+/share
Upcoming Catalysts:
• Q4 2013 financials due out at the end of April
• Q1 2014 financials typically out the end of May
• Corporate update
o How the consolidation of new acquisitions is going
o An update on the new, high-margin student housing division
o Update on how the new franchising program is rolling out
• Introduction of the new Loyalty Program
Due Diligence:
Paradigm Analyst Report
http://loyalistgroup.com/images/PDF/Morning%20Comments%20-%202014%2001%2031.pdf
MGI Securities Analyst Report
http://loyalistgroup.com/images/PDF/Initiating-Coverage-LOY-08-15-2013.pdf
Jacob Securities Analyst Report
http://loyalistgroup.com/images/PDF/LOY-Loyalist-Group-Limited-MTI-Acquisition-July-9-2013-JSI.pdf
Cormark Securities Coverage (VIDEO)
Blog 1
http://seekingalpha.com/instablog/19040961-e-vestorsgroup/2447311-loyalist-group-limited-an-undervalued-profitable-small-cap-canadian-education-play
Blog 2
http://seekingalpha.com/instablog/19040961-e-vestorsgroup/2616661-update-loyalist-group-limited-is-diversifying-its-revenue-base
Blog 3
http://drsaraheaton.wordpress.com/2014/02/18/a-new-kind-of-loyalist-public-esl-education-takes-on-a-whole-new-twist-in-canada/
Blog 4
http://www.freenpv.com/?p=442
Penny Roger$
14年前
DeVry Inc. (DeVry) is a provider of educational services and the parent organization of Advanced Academics, Becker Professional Education, Carrington College and Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, and Ross University. These institutions offer a range of programs in business, healthcare and technology and serve students in middle school through postsecondary education, as well as accounting and finance professionals. In August 2011, the Company acquired the business operations of privately held American University of the Caribbean. In April 2012, Becker Professional Education, part of DeVry Inc., acquired Falcon Physician Reviews.
http://www.google.com/finance?q=DV
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