4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Bridgepoint Stock Soars. Will It Get Bought Out?

Stock of Bridgepoint Education, the for-profit online university that appears more like a boiler room than an educational institution, zoomed once again today, soaring almost 12% to $22.89. As pointed out by Congress and the Department of Education, Bridgepoint uses high-pressure tactics to enroll students at its Ashford University. It gets almost all its revenue from federal loans and grants.

A huge percentage of its students drop out quickly. But since it doesn't have to give the money back, its revenues and profits growth is sizzling.

Motley Fool has been a big bull on the stock, noting that the company has $300 million in cash and no debt, and could be a takeover target (After all, a Wall Street firm owns 65% of its stock.)

Very importantly, more than half the positions in the stock in recent months have been short -- meaning speculators are betting the stock will fall. Shorts are likely to rush to cover their shorts, or buy the stock, if there is good news. And some think that is coming. In the next couple of weeks, the federal government is supposed to come up with a "gainful employment" rule that links a for-profit college's access to federal financial aid to students' ability to pay back loans.

Shorts have figured the rule will be punitive to Bridgepoint, which is being investigated by the Department of Education for bad recruitment practices. But others feel the rule will be watered down (Republicans have been pushing for that), and the shorts will rush to cover.

Today (May 25) at the famous Ira Sohn investment conference, a university student picked Bridgepoint as the best stock to buy. That student won first prize. Another analyst raised his rating on the stock.

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

Teddy Kennedy, Hunter Thompson as villains, San Diegan sneaks onto Coronado Islands

Singer Elizabeth Cotten, world's worst surfer, San Diego water towers, Baja Okies
Next Article

Stand-up paddleboarders can be tiresome

"I’m not going to try to drop in on someone"

Stock of Bridgepoint Education, the for-profit online university that appears more like a boiler room than an educational institution, zoomed once again today, soaring almost 12% to $22.89. As pointed out by Congress and the Department of Education, Bridgepoint uses high-pressure tactics to enroll students at its Ashford University. It gets almost all its revenue from federal loans and grants.

A huge percentage of its students drop out quickly. But since it doesn't have to give the money back, its revenues and profits growth is sizzling.

Motley Fool has been a big bull on the stock, noting that the company has $300 million in cash and no debt, and could be a takeover target (After all, a Wall Street firm owns 65% of its stock.)

Very importantly, more than half the positions in the stock in recent months have been short -- meaning speculators are betting the stock will fall. Shorts are likely to rush to cover their shorts, or buy the stock, if there is good news. And some think that is coming. In the next couple of weeks, the federal government is supposed to come up with a "gainful employment" rule that links a for-profit college's access to federal financial aid to students' ability to pay back loans.

Shorts have figured the rule will be punitive to Bridgepoint, which is being investigated by the Department of Education for bad recruitment practices. But others feel the rule will be watered down (Republicans have been pushing for that), and the shorts will rush to cover.

Today (May 25) at the famous Ira Sohn investment conference, a university student picked Bridgepoint as the best stock to buy. That student won first prize. Another analyst raised his rating on the stock.

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Comments
6

Here's the plan: Figure out how to rig it so they get it in their shorts . . .

May 25, 2011

That's the strategy of the shorts. They're falling short now. Best, Don Bauder

May 25, 2011

We all would wonder just who would buy this stinking pile of c**p. What major corporation would want to take on this mess? Maybe no major corporation would, but what about these mysterious private equity groups? Such as Platinum?

This whole picture is most unpleasant, and whatever the outcome, the local employees of Bridgepoint are the most likely to suffer.

May 25, 2011

Private equity groups could take it over. I don't know that another for-profit university such as Apollo would be interested. Bridgepoint is sitting on a lot of cash. The only thing in their way is justice -- administered by the Department of Education. But I think that DOE plan will be emasculated and the shorts will rush to cover. I could be wrong, of course. Best, Don Bauder

May 25, 2011

We all would wonder just who would buy this stinking pile of c**p. What major corporation would want to take on this mess? Maybe no major corporation would, but what about these mysterious private equity groups? Such as Platinum?

============= No one will buy them, no one in money management is that stupid.

Sallie Mae was trading at close to $70 a share when JC Flowers, a hedgefund, went under contract to buy them, then their stock went to $4 a share and that was the end of it-the student loan scams are front and center, and these diploma mill frauds operating 95% with fed student loan moneys know the jig is up. it is going to end, just a matter of when.

May 25, 2011

I hope you are right -- that the for-profit diploma-mill remoras that feast off federal money while providing tenth-rate education will die out. But I am skeptical. Phonies like Jack Welch are pumping the for-profits. For ideological reasons, Republicans in Congress want to support these degree mills. The Obama administration wants to increase the numbers of college grads -- a stupid objective, but we have to deal with it. The Democrats wail that Republicans want to cut Pell grants, and it's misuse of such grants that keeps these mills thriving. Best, Don Bauder

May 26, 2011

Sign in to comment

Sign in

Art Reviews — W.S. Di Piero's eye on exhibits Ask a Hipster — Advice you didn't know you needed Best Buys — San Diego shopping Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits City Lights — News and politics Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Excerpts — Literary and spiritual excerpts Famous Former Neighbors — Next-door celebs Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Here's the Deal — Chad Deal's watering holes Just Announced — The scoop on shows Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Of Note — Concert picks Out & About — What's Happening Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Pour Over — Grab a cup Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Drinks All Around — Bartenders' drink recipes Sheep and Goats — Places of worship Special Issues — The best of Sports — Athletics without gush Street Style — San Diego streets have style Suit Up — Fashion tips for dudes Theater Reviews — Local productions Theater antireviews — Narrow your search Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Waterfront — All things ocean Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close