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Richard Blum Reduces - Will CECO Make the Grade?

With Career Education Corporation ( CECO )'s mounting liabilities and a swarm of legal problems, investor Gurus are jumping ship or reducing positions to avoid a repeat of CECO's fall of 40% back in November 2011. At that time, hedge funds lost millions and Richard Blum , of San Francisco-based Blum Capital Partners, lost $101.9 million betting on this career-oriented education company.

Earlier this week Richard Blum reduced his CECO position by 6.44% on March 4, 2013, and yesterday, he reduced shares again by 10.41%, bringing his current shares to 11,189,211. CECO's current price is $2.65, a 4% change from average, and a 43% discount to its net cash position. However, according to a recent GuruFocus feature on CECO, "The company's substantial cash holdings, however, suggest the upside to such an investment is higher than the downside is low." Read the full article:

A top stock picker of 2012, Richard Blum is among a number of Gurus who have reduced or sold out their CECO shares since September 2012. Other Gurus who sold out at year end include Jeff Auxier and Joel Greenblatt; Chuck Royce also reduced his CECO shares by 96.59% in the quarter ended Dec. 31, 2012. Investor Gurus Paul Tudor Jones and Steven Cohen unloaded their CECO shares in the quarter ended Sept. 30, 2012. Richard Blum achieved among the highest average return over 12 months in 2012, at 55.2%, according to the GuruFocus Score Board of Gurus.

Here's the latest summary of Richard Blum's top buys, top sales and top holdings.

See a detailed analysis of CECO.

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. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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