Bright spot in chaotic week: ITT Educational Services, Inc. (ESI), Corinthian Colleges Inc (COCO), Career Education (CECO), Apollo Education (APOL), Lincoln Educational (LINC)
Career College Central Summary:
ITT said Friday that new student enrollment fell 8.1 percent for its second quarter and 9.5 percent for its third quarter. It had warned in May that new student enrollment for the second quarter could be down 10 percent to 15 percent. The company’s total enrollment fell 6.3 percent in its most recent quarter ending September with 57, 172 students.
It was welcome news for investors in ITT, which has been struggling with a number of financial and regulatory setbacks, and the U.S. for-profit education sector. The industry has been battered by further regulatory scrutiny this year. The sector lost its shine in 2010, when government investigations revealed high student-debt loads and low job prospects.
Corinthian Colleges Inc (NASDAQ:COCO) rallied 38.89% in sympathy with ESI. COCO was extending sharply rally after an SEC filing disclosed that it entered into a Forbearance and Consent Agreement (the “Forbearance”) dated as of October 10, 2014, by and among the Company, Everest Colleges Canada, Inc., the Guarantors party thereto, the Lenders party thereto (the “Lenders”) and Bank of America, N.A., as Domestic Administrative Agent and Canadian Agent (“Agent”).
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