Thanks, just heard it on CNBC. Unfortunately, when CBTSY changes their business model, it frequently involves accounting writeoffs, too. They have over $50M of purchased intangibles on their balance sheet.
My guess is that a significant amount of these intangibles may be required to be written off as a result of their change to the e-learning business model.
BTW, I think the change is smart. But the stock may languish in the short term once investors recognize these write-offs may occur.
Still more than a bit of loss of faith when officers/directors sell a substantial portion of their holdings. Suggests to me there is going to be some pain and suffering at least in the short term (writeoffs, depressed stock price) as they move to a more efficient delivery system. Also that some owners didn't like the adoption of the new business model and as a result, are selling. Likely today, perhaps tomorrow, too.
Personally, I like the change. But it may be tough sledding for awhile for some shareholders..
Hope everything is working the way you'd like to see it.
Mark |
