Dallas, Texas 02/14/2014 (FINANCIALSTRENDS) – Corinthian Colleges Inc (NASDAQ:COCO) which over a year ago was poised to be one of the best businesses in the education stocks, has seen a sharp fall, largely due to laxity of the management.
Corinthian Colleges Inc (NASDAQ:COCO) has over the past few quarters failed to attract fresh students or starters in the same huge numbers as before. The lack of students in this quarter is significantly higher as compared to the number of students in the previous year. Next, on the segment of enrolment too the company realised a sharp fall. The costs of the courses too have been one of the main points, which have driven down the performance of the stock. The Degree costs are higher in the context of value it delivers over, especially in comparison to the likes of Strayer. Strayer has since announced further cuts on their tuition fee and is expected to show a breakeven position. Corinthian Colleges Inc (NASDAQ:COCO) may find better student enrolment value if the tuition fees were to be cut to match the value of education it currently provides.
Corinthian Colleges Inc (NASDAQ:COCO) also is no less attractive study place in comparison to other education companies essentially because of the high levels of unemployment as well as the labor issues currently faced by the industry.
Corinthian Colleges Inc (NASDAQ:COCO) as a stock investment option is definitely down the list of educational company stocks. This is largely because of the pressures of the sector and industry as well. For COCO the turnaround is a challenge and the maximum would be limited to the company holding potential, but most unlikely to deliver on its attributes. The core reason for the poor performance of the company remains the lack of vision on the part of the management and the executives. The requirement is for a more experienced management, backed by better business model to turnaround a once good performing education company stock.