- Career Education reported very strong Q2 results, with the key being a return to positive enrollments for the first time in 4 years.
- The company also reiterated positive EBITDA by Q4'14, affirming CECO is on a return to growth by year-end.
- The stock has sold off, which we attribute to the messiness associated with transitional schools and general investor nervousness.
- The stock should be rallying. The company still trades essentially for cash. A peer group multiple of 1X EV/sales would value CECO at $18.