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Joe Gradzki

 
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  • Bridgepoint's Turnaround Based On Operational Execution With Heavy Insider Selling [View article]
    If I remember correctly, BPI bought back all of management's OTM ESOs for $19.50 during the tender. Looks to me like management and Warburg Pincus both bailed themselves out in a quarter that showed losses, all at the expense of the shareholders who didn't sell. (BPI's earnings loss that quarter would have been still larger if the tender wasn't made near the end of the quarter and weighted average share count was more greatly affected). For years they welcome the grant chasers because they made the enrollment metrics look high, but then when these scammers don't pay their AR, they fire their top accounting exec and restate their bad debt.... and then they stop reporting starts and pretend not to understand the distinction between persistence and retention... just count the number of times these guys restated since their IPO.
    Nov 10, 2014. 02:15 PM | Likes Like |Link to Comment
  • Update: Bridgepoint Education Earnings [View article]
    How can you analyze this company after they've stopped breaking out starts?

    You said...
    "BPI had 61,117 students enrolled at the end of Q2, which was a 5% decline from the end of Q1. This reflects the increase in the quality bar that BPI is now enforcing..."

    Are you sure about this? BPI enrollment numbers have tracked the general decline of the industry. I don't see how it's possible to make that judgement, especially without start data. I think there may even be a chance that BPI is back to its old ways.

    What are your graduation and dropout estimates for the year?
    Aug 8, 2014. 01:19 PM | Likes Like |Link to Comment
  • The Time Warren Buffett Got It Wrong [View article]
    The answer....

    $100 par @ 8%

    10 year = $62.20

    30 year = $49.00
    Jun 14, 2014. 02:36 PM | 1 Like Like |Link to Comment
  • The Time Warren Buffett Got It Wrong [View article]
    It's clear you missed my point. I know what duration MEANS. The question is what risks are inherent in a long dated, low coupon bond??? The answer is A LOT.

    You said "Most bonds will not as they are fixed rate." You're right. So what happens when interest rates rise??? Bond price fall... (The longer the bond and the lower the coupon, the harder they fall in an environment of rising rates) THAT'S DURATION, and duration of treasuries have never been higher.

    So I'll ask the question again a bit differently.....

    How much is a 10 year 2.5% treasury note worth if interest rates rise to say 8%???

    How much is a 30 year 3.5% coupon bond worth if interest rates rise to 8%???
    Jun 14, 2014. 02:28 PM | 1 Like Like |Link to Comment
  • Why I Just Made Montage Technology Group My Largest Short Position [View article]
    Where's Kevin Porter when you need him??
    Jun 13, 2014. 03:49 PM | 1 Like Like |Link to Comment
  • Why I Just Made Montage Technology Group My Largest Short Position [View article]
    AC, nice work on this story.
    Jun 12, 2014. 04:06 PM | 1 Like Like |Link to Comment
  • Why I Just Made Montage Technology Group My Largest Short Position [View article]
    Maybe their definition of "material" is different than mine???
    Jun 12, 2014. 02:47 PM | 3 Likes Like |Link to Comment
  • Why I Just Made Montage Technology Group My Largest Short Position [View article]
    May 22 - 8-K....

    The Company disclosed in its Form 12b-25 Notification of Late Filing, filed on May 16, 2014, that its Form 10-Q for the period ended March 31, 2014 cannot be finalized until the completion of the audit committee’s review of allegations contained in reports issued by Gravity Research and the completion of the audit of the Company’s financial statements for the period ended March 31, 2014.


    June 11 - Merger Agreement – ARTICLE 4 Representations and Warranties of the Company...

    (i) Since September 25, 2013, neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, employee, auditor, accountant or representative of the Company or any Subsidiary, has received or otherwise been made aware of any material complaint, allegation, assertion or claim, whether written or oral, regarding the accounting or auditing procedures, methodologies or methods of the Company or any of its Subsidiaries or their respective internal accounting controls, including any material complaint, allegation, assertion or claim that the Company or any of its Subsidiaries has engaged in questionable accounting or auditing practices.

    …Since September 25, 2013, there have been no internal investigations regarding accounting or revenue recognition discussed with, reviewed by or initiated at the direction of the chief executive officer, chief financial officer, general counsel, the board of directors or any committee thereof of the Company or any of its Subsidiaries.
    Jun 12, 2014. 02:43 PM | 3 Likes Like |Link to Comment
  • Why I Just Made Montage Technology Group My Largest Short Position [View article]
    May 22 - 8-K....

    On May 20, 2014, Montage Technology Group Limited (the “Company”) received a letter (the “Letter”) from the NASDAQ Stock Market LLC (“NASDAQ”) indicating that NASDAQ has determined that the Company’s failure to file its Form 10-Q for the period ended March 31, 2014 with the Securities and Exchange Commission serves as an additional basis to delist the ordinary shares of the Company pursuant to NASDAQ Listing Rule 5250(c)(1).


    June 11 - Merger Agreement – ARTICLE 4 Representations and Warranties of the Company...

    (g) Since September 25, 2013, the Company has complied in all material respects with the applicable listing and corporate governance rules and regulations of NASDAQ.
    (k) Since September 25, 2013, the Company has been and is in compliance in all material respects with the applicable rules and regulations of the 1933 Act, the 1934 Act and NASDAQ.


    Jun 12, 2014. 02:42 PM | 3 Likes Like |Link to Comment
  • Why I Just Made Montage Technology Group My Largest Short Position [View article]
    "The Merger Agreement contains certain termination rights for the Company and Parent. Upon termination of the Merger Agreement under specified circumstances, including with respect to the Company’s entry into an agreement with respect to a Superior Proposal outside of the “go shop” periods, the Company will be required to pay Parent a termination fee of $40,770,000, but if the Company terminates the Merger Agreement to enter into a Superior Proposal during a “go shop” period, the Company must only pay to Parent a termination fee of $20,385,000. The Merger Agreement also provides that Parent will be required to pay the Company a reverse termination fee of $67,940,000 under specified circumstances set forth in the Merger Agreement, including if Parent fails to obtain any of the Parent Required Approvals or PRC antitrust clearance other than as specified in the Merger Agreement."

    http://1.usa.gov/1hJVK3H
    Jun 11, 2014. 06:30 PM | Likes Like |Link to Comment
  • The Time Warren Buffett Got It Wrong [View article]
    What's the duration of a 30-yr on-the-run treasury yielding 3.5-ish %?

    How does one retain their purchasing power when the economy and inflation picks up??
    Jun 11, 2014. 04:00 PM | Likes Like |Link to Comment
  • China Orders Montage Technology To Cease Production And Sale [View article]
    All,

    WT wrote a SA article this afternoon too...

    http://seekingalpha.co...
    Jun 11, 2014. 01:54 PM | Likes Like |Link to Comment
  • Why I Just Made Montage Technology Group My Largest Short Position [View article]
    =)
    Jun 11, 2014. 12:56 PM | Likes Like |Link to Comment
  • China Orders Montage Technology To Cease Production And Sale [View article]
    BTW.... 8-K is yet to be posted.
    Jun 11, 2014. 11:31 AM | Likes Like |Link to Comment
  • China Orders Montage Technology To Cease Production And Sale [View article]
    The SEC would look at this as a win-win for the US shareholders. Equity holders get paid, and one more chi-scam company disappears. I'm not sure that they care much about the put holders of MONT... nobody sees those losses.
    Jun 11, 2014. 11:26 AM | Likes Like |Link to Comment
COMMENTS STATS
31 Comments
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