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Bridgepoint Education, the for-profit university that is under investigation on many fronts, today (May 10) filed a document saying that it will be late turning in its quarterly report (10-Q) to the Securities and Exchange Commission. The company cited "unanticipated delays experienced in the preparation of Form 10-Q. These delays were primarily a result of performing additional analyses and reviews of the company's process for estimating allowances for doubtful accounts and the completion of management's assessment of the effectiveness of the company's disclosure controls and procedures and changes in internal control over financial reporting." The stock rose 2.57% today and is up another 1.95% in after-hours trading. Thanks to Matt Potter for passing along this information.

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Comments

Visduh May 10, 2013 @ 5:56 p.m.

If I were to guess, I'd say that their auditors are finally questioning how collectable much of their already-recognized revenue really is. Then there are a few other matters that can be just as significant. When the auditors finally get suspicious, and are performing additional analyses and reviews, the company has a huge problem.

Could this be the beginning of the end for this scam company? Or is it merely the "end of the beginning?"

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Don Bauder May 10, 2013 @ 7:31 p.m.

Visduh: Usually such a delay is not a good sign for a company. I find it interesting, though, that the stock rose sharply during regular market hours and kept rising after hours. Best, Don Bauder

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Visduh May 10, 2013 @ 7:57 p.m.

Bridgepoint stock has defied gravity for quite a while. Maybe all that sponsorship publicity has actually bought public opinion.

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Don Bauder May 11, 2013 @ 6:18 a.m.

Visduh: Bridgepoint stock has always been interesting. There is generally a huge short position. Any scrap of news or rumor that suggests the company will duck or at least be somewhat unscathed by regulatory requirements can send the shorts rushing to cover, pushing up the stock. I do not know if that had anything to do with the recent runup; the news, certainly, did not look good on the surface. Best, Don Bauder

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