Explosive Corinthian Colleges Volume (COCO)

Posted in General 
September 9th, 2010

Corinthian Colleges Inc. (NASDAQ: COCO) shares the same crummy fate right now of many for-profit education stocks under fire for government student loan funding and regulation based upon loan default rates and based upon a lack of real job expectations after graduation.  Yet here we sit on an otherwise quiet day with shares up 8% at $5.30 on nearly 10 million shares versus an average volume of about 6 million shares and versus a 52-week range of $4.23 to $20.29.

Today’s jump is from speculation that Bill Ackman’s Pershing Square may be involved in acquiring.  It appears that board members have bought stock recently as this one has been battered and tattered with a 52-week trading range of $4.23 to $20.29.

There have also been close to 7,000 contracts in each of the SEPT-OCT-NOV 2010 call options traded.

Stay tuned, but this may need to be taken lightly.  A $467 million market cap now makes it an easy size to do but the losses for holders have been too large to get a deal done unless a buyer is willing to offer a super-premium.

JON C. OGG

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