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

Career Education: Recent Disclosure Does Not Change The Turnaround Story

Yesterday, Career Education (NASDAQ:CECO) disclosed via SEC filing the following:

On January 24, 2014, Career Education Corporation (the "Company") received inquiries from twelve state Attorneys General regarding the Company's business practices. The Attorney General of Connecticut has informed the Company that it will serve as the point of contact for the inquiries related to the Company. The inquiries focus on the Company's practices relating to the recruitment of students, graduate placement statistics, graduate certification and licensing results and student lending activities, among other matters. The Company believes that several other companies in the private sector education industry have received similar inquiries. The Company intends to cooperate with the states involved.

Shares have dropped 15% in the last 5...

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