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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (5205)	12/20/1998 10:46:00 AM
From: Nevada	Read Replies (1) \| Respond to of 18998

CLCX- After reading the clcx 10 (Oct 31, 1998) the following additional observations are made and questions come to mind. The financials have nothing really unusual about them. Noted that the average collection period actually went down over the period. Note the huge increase in operational costs- explained as faculty and support (I had to adjust their figure for averaging and to pro forma the financials to an annual basis). Cash is being drained but a new credit line has been obtained. From the wording of the statement, the credit line is from a disinterested outside source. The credit line should be enough cash for one year. While the interest rates are not disclosed, the creditor apparently has enough faith to loan up to an additional 12 million. It will be noted from the financials that the credit line is essentially unsecured. The allowance for doubtful accounts is huge, but actually decreased from last year as a % of a/r. Again this might be normal for the industry. The legal section makes most interesting reading, but it is possible that these are normal operations of a school of this type. Need an attorney here. A noted disturbance was that the Ill thing was filed in Spring then apparently settled in the summer and now is unsettled. Note that Ill is apparently just one of their problem States. With the stock at 5 and change how much downside is there? Note that there are some options available on the CBOE that are not that pricey is you feel this is headed straight down. Just not sure it is going to be that straight give the new compliance lady, new coo and the new credit line. Sure would like to know more about the guys - Harry Gaines, Reid Bechtle and the new COO John Corse as well as Marie Bennet (new compliance officer). Sure are a lot of analysts following for such a company- with new corporate officers, a new credit line, am just not sure at this point. Could see the company hanging around like AENG for a long period.