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Sally Jones
Sally Jones
Articles (580) 

Career Education Corp's Richard Blum Unloads CECO Shares Down 70%

April 11, 2013 | About:

Investor Guru Richard Blum, Blum Capital Partners, reduced his Career Education Corporation (NASDAQ:CECO) stake again by 4.47% as of April 8, 2013. After six reductions this year, he now has 10,473,021 shares after the recent trade. According to GuruFocus research, a review of Blum’s CECO quarterly buying and selling over five years shows only losses — high double-digit losses. In looking at this stock’s performance, you may ask investors, what year did you lose the least?

As of Dec. 31, 2012, Blum had bought 5,799,470 shares at an average price of $17.91 per share, with an 88% loss. For shares sold, same quarter ending, Blum sold 4,165,620 shares at an average price of $11.51 per share, for an 81% loss. Blum is listed as 10% owner of Career Education Corporation.

His holding history:

The company's troubles have continued in a milieu of controversy after the U.S. Government Accountability Office (GAO) began looking for potential fraud in the for-profit education sector starting back in 2010. The Department of Education’s new regulations, as of June 2011, are designed to prevent potential fraud in the sector. As a result of closer monitoring of the enrollment process, some for-profits have suffered a drop in student enrollment. Career Education Corporation announced in November that due to declining enrollment, the company would cut its workforce by 900 jobs and close 23 schools.

The company has a market cap of $141.8 million, and a P/S ratio of 0.1. Down 37% since January, CECO’s current price is $2.21, with a change from average up 1%.

See a detailed analysis of CECO.

As of March 20, 2012, Blum Capital Partners held 10 stocks with a total value of $6.2 billion. The company portfolio shows a large real estate sector of 48.5%.

Here’s the latest summary of Richard Blum’s top buys, top sales and top holdings.

Little-known Guru Fact: Richard Blum attempted to climb Mount Everest from the Tibetan side with Sir Edmund Hillary in 1981. (Source: Wikipedia).

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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."

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