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Sally Jones
Sally Jones
Articles (580) 

Richard Blum Cuts CECO Third Time

March 13, 2013 | About:

For the third time this month, Richard Blum, of San Francisco-based Blum Capital Partners, reduced his stake in Career Education Corporation’s (NASDAQ:CECO) by 1.79% on March 11, 2013. He had reduced his CECO shares by 6.44% on March 4, 2013, then again by 10.41% on March 7. After his latest trade, Blum holds current shares of 10,989,211. CECO’s current price is $2.60, with a change from average down 2%. Amidst a swarm of litigation, investigations and inquiries, CECO stakes have been dropped or significantly reduced by a number of other investor Gurus starting last fall, including Jeff Auxier, Joel Greenblatt, Chuck Royce, Paul Tudor Jones and Steven Cohen.

See a detailed analysis of CECO.

GuruFocus performed a thorough financial and performance checkup on CECO and discovered two severe warning signs: The company has a Piotroski F-Score of 2, which usually implies poor business operations, and its operating margin has been in a five-year decline. Good signs for CECO are that the company has enough cash to cover its debt; the CECO price ($2.66) is close to its 10-year low of $2.65. The company’s P/B ratio (0.29) is close to its 10-year low of 0.27, and the P/S (0.1) is also close to its 10-year low of 0.1.

Compare CECO and its competitors here.

As of Dec. 31, 2012, Blum Capital Partners held 10 stocks with a total value of $6.2 billion. The company's portfolio shows a large real estate sector weighting of 48.5%. 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 Blum’s top buys, top sells and top holdings.

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 the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.4/5 (8 votes)


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