Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Bridgepoint's Major Shareholder to Sell; Stock Down

Shares of Bridgepoint Education are down 11.61% to $26.96 near the end of the July 25 trading day.

The company's largest shareholder, Wall Street's Warburg Pincus, has put its entire stake -- 65% of outstanding shares -- up for sale. Warburg was one of the founders of the company in 2004. The stock has tripled since Warburg took it public in April 2009.

Bridgepoint is extremely controversial because, as I have stated many times, it is a boiler room. High-pressures salespeople get people to sign up for online education even though the people aren't suited for any college. Senator Tom Harkin repeatedly points out that 84% of two-year students at Bridgepont's Ashford University drop out, and 63% of four-year students quit. (Ashford accounts for almost all of Bridgepoint's business.)

You, the taxpayer, get stuck for the bill for this. Officially, the company gets 85% of its business from federal Pell grants and federal loans. But if military recruits are counted, it's more like 100%.

I predicted some time ago that Bridgepoint stock would go up, even though I found everything about the company ethically repugnant. That was because the Department of Education was threatening to put restrictions on Bridgepoint and similar for-profit schools. More than half of Bridgepoint's shares were short. That meant that if the government watered down the proposal -- as it did -- the shorts would cover and the stock would roar up.

That happened. Bridgepoint stock roughly doubled, but then backed down today. Warburg's decision to take its considerable profits may have interesting implications.

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

NORTH COUNTY’S BEST PERSONAL TRAINER: NICOLE HANSULT HELPING YOU FEEL STRONG, CONFIDENT, AND VIBRANT AT ANY AGE

Next Article

Live Five: Sitting On Stacy, Matte Blvck, Think X, Hendrix Celebration, Coriander

Alt-ska, dark electro-pop, tributes, and coastal rock in Solana Beach, Little Italy, Pacific Beach

Shares of Bridgepoint Education are down 11.61% to $26.96 near the end of the July 25 trading day.

The company's largest shareholder, Wall Street's Warburg Pincus, has put its entire stake -- 65% of outstanding shares -- up for sale. Warburg was one of the founders of the company in 2004. The stock has tripled since Warburg took it public in April 2009.

Bridgepoint is extremely controversial because, as I have stated many times, it is a boiler room. High-pressures salespeople get people to sign up for online education even though the people aren't suited for any college. Senator Tom Harkin repeatedly points out that 84% of two-year students at Bridgepont's Ashford University drop out, and 63% of four-year students quit. (Ashford accounts for almost all of Bridgepoint's business.)

You, the taxpayer, get stuck for the bill for this. Officially, the company gets 85% of its business from federal Pell grants and federal loans. But if military recruits are counted, it's more like 100%.

I predicted some time ago that Bridgepoint stock would go up, even though I found everything about the company ethically repugnant. That was because the Department of Education was threatening to put restrictions on Bridgepoint and similar for-profit schools. More than half of Bridgepoint's shares were short. That meant that if the government watered down the proposal -- as it did -- the shorts would cover and the stock would roar up.

That happened. Bridgepoint stock roughly doubled, but then backed down today. Warburg's decision to take its considerable profits may have interesting implications.

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Bridgepoint Says Government Softens Report; Stock Soars

Next Article

Stocks of For-Profit Colleges Zoom on Rumors

Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.

This Week’s Reader This Week’s Reader