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Stock of controversial Bridgepoint Education is down 8.62% this afternoon (Nov. 4) to $17.92.

An analyst for Deutschebank lowered his recommendation to sell from hold. The analyst notes that since other for-profit universities such as University of Phoenix and Strayer have lowered their prices, Bridgepoint is now the most expensive of the national for-profits and will probably have to follow suit.

Also, Bridgepoint's chief executive, Andrew Clark, has indicated that he may sell as much as 19% of his shares.

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Comments

shirleyberan Nov. 4, 2013 @ 1:41 p.m.

Maybe these profiteers ain't so smart - unreasonable expectations or something unseemly - this economy can't support all they seek and they let everybody involved down. Epidemic.

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Don Bauder Nov. 4, 2013 @ 2:42 p.m.

shirleyberan: It's very expensive to attend Bridgepoint's Ashford University online. This is just one of the disgusting things about that company. Best, Don Bauder

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Visduh Nov. 4, 2013 @ 3:15 p.m.

If the other guys are cutting prices, it is because sales, er, enrollment, is down, and probably sharply. I think the word is getting out there that spending on education doesn't have the payback we have assumed for generations. And that is true especially for these mills that charge an "arm and a leg" and deliver a poor product. It may take a long time for the public to really wise up to what the for-profit colleges are doing, but I'd say this marks the beginning of a decline for them. It may be years before they fold up, but such companies are on the way out, unless they make major changes of priority and direction.

Learning that Clark is cutting his holdings of the stock in his own company tells a story too. If he thought it was on a growth track he would not sell but rather buy more stock. He sees the handwriting on the wall.

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Don Bauder Nov. 5, 2013 @ 7:13 a.m.

Visduh: Agreed on both points. 1. Word is getting around that the for-profit universities charge a lot of money but the degree is of little value in getting a job; 2. Yes, I would be concerned about Clark's possible intention to dump 19% of his stock. Best, Don Bauder

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Ponzi Nov. 5, 2013 @ 10:48 p.m.

Odd, many of the for-profit stocks have been bolting upward. I am not a fan. The student loan bubble is just one bubble that is going to emerge in 2014. We have a perfect storm brewing.

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Don Bauder Nov. 6, 2013 @ 9:02 a.m.

Ponzi: Student loans now are about $1.2 trillion -- a stunning number. For-profit universities account for about 10% of students and 45% of defaults. But the government still gives these universities light wrist taps.

Bridgepoint stock has often been strong because there is a huge short position. When there is good news -- say, the government comes out with a pusillanimous program to curb the abuses -- the shorts rush to cover and the stock shoots up. Best, Don Bauder

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