Corinthian Colleges (NASDAQ:COCO) continues to operate under enormous strain, as their CEO stepped down after the board of the company requested him to.
"This is another negative development for COCO and the second top-level management change in as many months, after the resignation of President and COO Matt Ouimet in October. Waller had been COCO’s CEO since July 2009 after serving as President and COO from February 2006 to June 2009. In our view, although Massimino clearly has experience with the company and overall industry, the ongoing turmoil and regulatory pressures should continue to weigh on the shares. We believe the company’s aggressive recruiting of lower-quality students over the past few years has effectively boxed it in, pushing it right up against 90/10 limits (89.8% for FY10), and driving cohort default rates (CDRs) higher and repayment rates lower," said FBR.
An "Underperform" rating remains in place on Corinthian from FBR.
Corinthian Colleges closed Wednesday at $4.09, falling $0.05, or 1.21 percent.
They've traded in a 52-week range of $3.92 to $19.31, barely staying above their low.
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