In the last few years, Career Education Corp.
has been hit hard by investigations, regulatory changes, and
lawsuits. As the CECO stock price continues to decline from a
February high of $5.04 to the current price of $2.60, investor
, Blum Capital Partners, reduced his CECO stake again by 0.23% on
March 18, 2013. This is the fifth time Blum has reduced his
position this month, unloading 1,525,794 shares since March 4,
2013, when he began making a string of reductions. After his
latest CECO trade,
holds current shares of 10,963,417. CECO's current price is
$2.60, with a 0% change from average.
Here's the CECO holding history of Investor Guru Richard Blum who
achieved among the highest average return over 12 months in 2012,
at 55.2%, according to the GuruFocus
Score Board of Gurus
If you delve into Career Education Corp.'s history, it condenses
down into a high drama about grabbing pork. The background on
part of the company's problems involves pressure from the U.S.
GAO (Government Accountability Office) to uncover potential fraud
in the For-Profit Education sector starting back in 2010. In
August of that year, GAO launched an investigation designed to
find out if organizations somehow pressured potential students or
fudged their enrollment data or process to qualify them for
federal student aid. GuruFocus reported:
"To conduct this investigation, GAO investigators posing as
prospective students applied for admissions at 15 for-profit
colleges in 6 states and Washington, D.C. The colleges were
selected based on several factors, including those that the
Department of Education reported received 89 percent or more of
their revenue from federal student aid. "
In June 2011 the Department of Education released new regulations
designed to prevent potential fraud in the For-Profit Education
sector, putting Career Education Corp. and others in a
transformational bind. Their numbers of new starts, i.e., new
students, could be greatly influenced by the new regulations and
Other investor Gurus, including Steve Cohen, Jeff Auxier, Joel
Green Blatt, Chuck Royce, Paul Tudor Jones, have reduced or sold
out their positions, starting last fall. Guru Jim Simons added to
his CECO position by 25.23%, quarter ending Sept. 30, 2012. He
holds 1,942,462 CECO shares bought at $2.69.
See a detailed analysis of CECO.
As of Dec. 31, 2012, Blum Capital Partners held 10 stocks with a
total value of $6.2 billion. The company portfolio shows a large
real estate sector of 48.5%.
Here's the latest summary of Richard Blum's top buys, top sales,
and top holdings.
GuruFocus "Real Time Picks" reports the stock purchases and sales
that Gurus have made within the prior 2 weeks. The report time
lag can be as short as 2 days after the date of the transaction.
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