http://money.cnn.com/news/newsfeeds/articles/prnewswire/DE17823.htm
2 replies (most recent on top)
The stock is trying to recover from recent selling pressure and has several bullish technical
patterns, but needs to break above prior resistance at $0.18 to continue the recent bullish
breakout. The stock trades significant volume, with an average daily volume of approximately 3.0
million shares. Nimble smaller traders could profit from attempting to trade any intraday
movements higher, and a continuation of the recent bullish move. Due to the pending
dissolution of the company, the establishment of larger positions is not recommended.
The longer term future of COCO is not in doubt – the company will be dissolved and its assets sold.
As reported in the company’s most recent 8K filing with the SEC, the company has reached an
operating agreement with the Department of Education that is intended to result in the sale of
most of the company’s schools, the teach-out of certain other schools, and oversight of the
company’s ongoing operations. Under the agreement, the company will establish an escrow
fund with an initial deposit of $500,000, and bi-weekly deposits of $250,000 until the fund
reaches $30 million. Additionally, the company will make deposit of $5 million on October 23,
- The company will also be depositing 35% of the net proceeds from the sale of any school,
in which the net proceeds exceed $750,000. As reported in the 8K filing, the company will
continue to seek additional sources of liquidity through new financings, additional cost
reductions, and accelerated asset sales (or a combination of these actions). On a nearterm basis
the stock is trying to find support, and several technical indicators are mixed: