How likely is this? Given the state of the for-profit sector, are we heading in a Bankruptcy direction just like Corinthian, etc.
11 replies (most recent on top)
Anonymous87846 - the stock you bought will be MUCH cheaper in 6 months. Go check out APOL stock option chains and see what people are betting on...
Bankruptcy is unlikely because the stock is so cheap. I actually bought a bit to be in the game because at current prices the big money funds have to be looking very seriously at it. It will take tons more to fix the shipwreck that UOP has become under the leadership of the shitheel 'bankers.'
Will the stock go lower. Yes. Will the buyer have to pay a premium, who knows. Apollo common stock has NO VOTING rights. Only the preferred shares held by family members have voting rights.
Someone knowledgeable please correct me if I'm wrong on the exclusivity of voting stock.
iPhone fail corrections: wiki can NOT be used to cite. Remove the do unless you substitute doody... No value in Wiki... Look for tooth.
87794...citing Wikipedia is ludicrous. They can be used to cite a college paper, do anything there is no more valuable than kitty litter. Not picking on you, but suggesting look tooth valid articles. Remember even the Motley Fool is just one analysts opinion. And yes... There are many buyers in the market for a turn around company. Buy low sell high...UOP is not going to be squeezed out... They will modify and have new ownership.
Why dont we settle if it is so easy
@Anonymous87758 - it may be happening all the time but this time if a bit different. The fact is that the Gov is after the WHOLE sector, the purpose of the litigation is not punitive or driven by damages. The Gov is after the sector, they want pretty much everyone gone or dancing in a very controlled manner (no or minimal profits). There will be no settlement here, they will continue to squeeze us all out and you will see the enrollment numbers drop even faster than what we've seen since 2010. Even our Wikipedia entry starts with "criticism of high debt loads and low job prospects for university students" - now, if one is to drop 40K on education and his/her target school features 'high debt load' and 'low job prospects' in the opening paragraphs of the leading independent post about the school, I am sure the prospective student will get an instant flow of chills up the spine. So, with the Gov insisting on a quality reform / lower prices / damages, the student population dwindling, the reputation and goodwill continuing to evaporate rapidly, the cash flow for operations approaching zero - do you really think ANYONE would want to buy us at ANY price?
Litigation will be settled if a sale is imminent. Happens all the time. New buyer says, we will not do.....fill in the blank. We will operate this way and everyone hugs it out...done and done. Happens all the time.
One must be nuts to buy us right now, look at the long queue of litigation instances we are dealing with. Attorney Generals of 20+ states are looking at a slew of issues relating to our business practices, so to buy us right now would be rather suicidal for anyone. I am no expert in the M&A space, but a purchase does not make sense right now. Our business model has to evolve and we need to provide more value for the prices we charge. This can be achieved in a number of ways but that is a separate topic. The for profit sector is going through a structural change massive in scale, it is gradual so not all elements are easy to see. Things will get much worse before they become better (for a handful of folks who will remain to tend a much smaller ship)...
I think they are positioning for a sale. Cutting the campus staff and shuttering the leased spaces. Trimming the fat for a lean sale. My linkedin has been popping up all week with folks changing their bio to show new employment, from the ad staff in San Fran to campus Directors in DE...lots of ship jumping.
Camden Kid...still got to say, you don't know as much as you like to imply...leave the forum to the adults....shoo, go away.
@USinjustice - we get most of our money (not sure what exact %, but it's more than 50%) from the government. If they cut that revenue stream we will fold or downsize to a fraction of what we currently are. Not sure if we'll be BK, but I also do not see us surviving in the current form. I also think that the Dems are more likely to push for the ultimate extinction of profit schools, if GOP takes over the White House, I think they will be more friendly. Also, OP - we are not even remotely similar to Corinthian Colleges. Just my two cents.
In my opinion, bankruptcy is far away. Apollo Education Group (APOL) has the opportunity to turn the ship in the right direction, but it's doubtful. The culture of corruption is so oppressive and so entrenched at APOL that it's hard to imagine the current leadership righting the course. If Republicans or Hillary Clinton become President, I would think Apollo Group/University of Phoenix management believes they can continue their near-criminal ways. A more likely longer-term scenario, in my mind, is that hedge funds increasingly buy up the stock then perhaps go private to avoid transparency and accountability. APOL is also trying to take advantage of their global connections, where they can avoid scrutiny, as Laureate does.