FBR Capital Reiterates an 'Underperform' on Corinthian Colleges (COCO); CEO Resigns After Board Request; Chairman Takes Over
COCO Hot Sheet
Rating Summary:3 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38
FBR Capital reiterates an 'Underperform' rating on Corinthian Colleges (NASDAQ: COCO).
FBR analyst says, "This is another negative development for COCO and the second top-level management change in as many months, after the resignation of President and COO Matt Ouimet in October. Waller had been COCO’s CEO since July 2009 after serving as President and COO from February 2006 to June 2009. In our view, although Massimino clearly has experience with the company and overall industry, the ongoing turmoil and regulatory pressures should continue to weigh on the shares. We believe the company’s aggressive recruiting of lower-quality students over the past few years has effectively boxed it in, pushing it right up against 90/10 limits (89.8% for FY10), and driving cohort default rates (CDRs) higher and repayment rates lower."
For more ratings news on Corinthian Colleges click here and for the rating history of Corinthian Colleges click here.
Shares of Corinthian Colleges closed at $4.14 yesterday, with a 52 week range of $3.95-$19.31.
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FBR analyst says, "This is another negative development for COCO and the second top-level management change in as many months, after the resignation of President and COO Matt Ouimet in October. Waller had been COCO’s CEO since July 2009 after serving as President and COO from February 2006 to June 2009. In our view, although Massimino clearly has experience with the company and overall industry, the ongoing turmoil and regulatory pressures should continue to weigh on the shares. We believe the company’s aggressive recruiting of lower-quality students over the past few years has effectively boxed it in, pushing it right up against 90/10 limits (89.8% for FY10), and driving cohort default rates (CDRs) higher and repayment rates lower."
For more ratings news on Corinthian Colleges click here and for the rating history of Corinthian Colleges click here.
Shares of Corinthian Colleges closed at $4.14 yesterday, with a 52 week range of $3.95-$19.31.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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