Brian Grosso
Investment advisor, long only, long-term horizon, value

Education Management Corp: Bankrupt In 5 Years Or Less And Overvalued Now

After researching the nature of Education Management Corp. (NASDAQ:EDMC)'s debt situation and projecting the company's cash flow generating abilities over the next 5 years, I found that shares of the company's common stock are critically overvalued and the company is likely to go bankrupt in the near future.

Investment Thesis

Education Management Corp. is in the kind of horrid financial situation that makes its ability to pay off loans of paramount concern to any investor considering investing in the company. As of March 31, 2013, the company had $1.3 billion in debt due in parts over the next few years.

(click to enlarge)

Source: SEC.gov

My utmost concern is whether the company will be able to handle these...

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