FWIW, the term "exchanged gifts" strongly suggests that this isn't a case of bribery. In my mind it was also important that Meyers, the CEO, resigned. In other words, no investigation or Inquiries just being reported. Additionally, something that I have always liked about the company was the following 10-K description of their business practices.
"The barriers to exit for our lender and marketer clients are high as a result of the long product life cycles in this market, our unique database, our specialized processing capabilities, our market knowledge, and our non-participation in the Federal student loan business. All these factors also represent substantial barriers to entry for new competitors. Indeed, we have never lost a lender or marketer client to a competitor, nor has a bank client ever chosen to end their relationship with us to take their program in-house."
It's hard to find a company, without patents, that still has a wide moat. The company had a couple of PRs that suggested increased business ties apart from their core participants. So we'll see.
It was on my end of the year shopping list, but now I own it. |
