Diamonds and Dogs
7/13/12Bridgepoint Education Inc. (BPI)
Bridgepoint was a dog on Monday and today has it continued its downward spiral, falling 24% to $9.77. The company's stock continued to fall as its accreditation problems continue to get worse. The Higher Learning Commission (HLC) stated that Ashford University (operated by Bridgepoint) might lose their accreditation based on a variety of factors including education standards and drop-out rate. Bridgepoint was trying to "cheat on its test" by simply changing accreditation agencies. Bridgepoint wanted to switch from HLC to the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges (WASC). WASC denied Ashford's accreditation, leaving Bridgepoint at the hands of the HLC. Without accreditation, a school can lose its access to federal financial aid, which can comprise as much as 90% of for-profit schools' revenue. Maybe the management at Bridgepoint should go back to school.
Presidential Life Corp. (PLFE)
Presidential Life Corp is one of many diamonds today rallying 37% to $13.86. The insurance company saw its shares spike after news was released that Athene Holding Ltd would acquire them for $14 per share in cash, for a total value of $415 million. The transaction is expected to close in late 2012 and is subject to the approval of the New York State Department of Financial Services and the holders of a majority of the outstanding shares of Presidential Life common stock. The sale has caused shares to reach a new 52-week high. Presidential Life had a phenomenal day, giving its shareholders a large boost.
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