Short Seller Targets AdTalem (fka DeVry)

"Quadir’s firm writes that Adtalem is “a toxic byproduct of an imperfect higher education system.”
Oh -- I'm just LOVIN' this.

 

Adtalem was one of the firms cited for messing up adopted Latin names.

"The name Adtalem, the company said, is taken from the Latin phrase "to empower." But according to two Harvard Latin professors (emphasis mine - J) contacted by BuzzFeed News, the phrase is something close to gibberish."

From here: https://www.buzzfeednews.com/article/mollyhensleyclancy/troubled-colleges-rebrand-under-faux-latin-names

I'm glad none of Adtalem's schools teach Latin.

 

Fahmi Qadir is a very interesting person. I admire her abilities. I'll bet Adtalem doesn't.
https://www.institutionalinvestor.com/article/2bswhgrmp6rwew5wlqnsw/portfolio/hacked-printers-fake-emails-questionable-friends-fahmi-quadir-was-up-24-last-year-but-it-came-at-a-price

 

Chamberlain offers mainly nursing degrees, Ross is a medical and vetinary, American University of Caribbean is also a medical school - only the recent Walden acquisition is offering soft degrees.

 

I don't think it matters - how good the degrees are, or aren't, or whether the schools are predatory or not.

I think Ms, Qadir's brilliance is in financial analysis. She sees a promising situation - and engineers her strategy. In this case, if she can find and say something bad about the school - it's good PR. All the groundlings yell approval - "Take it down, Fahmi!"

I like her style. Cold as a cobra. She dresses beautifully, too. Such taste. Jitrois (Paris) is her favourite label. 38-40 Rue du Faubourg Saint-Honoré, 75008 Paris. Absolutely Top Drawer. Fahmi Qadir belongs in a really exciting novel!

Her name:

Fahmi - (Arabic) understanding, comprehension, knowing
Qadir - (Arabic) capable, competent.

Qadir has religious significance. Al-Qadir is one of the 99 names of Allah. In that instance, it means "All-Powerful," or "He who can accomplish everything,"

There's a LOT in names.

 

She adds nothing of value to society whereas AdTalem is turning out nurses, nurse practioners, vetinarians, doctors and psychologisyts. Qadir on the other hand is a parasitical stock manipulator.

 

She adds nothing of value to society whereas AdTalem is turning out nurses, nurse practioners, vetinarians, doctors and psychologisyts. Qadir on the other hand is a parasitical stock manipulator who produces nothing.

 

Parasitical is an opinion I don't share here, and "produces nothing?" Ms. Qadir produces a lot of income for her company. You may object to her aims, but she does it with style and brilliance. I admire her qualities - financial acumen, methodical, skilled -- and above all --- cool. A defect to admire her so, some would say, but I'm comfortable with it.

Adtalem doesn't turn out these skilled and vital people - they bought schools that do that. For the sole purpose of making money. And I believe what Ms. Qadir said about the predatory practices to be true, even if saying it was of benefit to her "mission."

Suggestions:

"Practioners" should be "practitioners," I think.
"Vetinarians" should be "veterinarians."
"Psychologisyts" should be "Psychologists"

And posting an opinion twice does not really add emphasis.

 

Liquidity. Price discovery. Information.

 

And I hope, someday, when Adtalem is selling for about 16 cents a share, and no longer owns anything, that these schools will still be flourishing without Adtalem, with a renewed mission to offer their students sterling educational opportunities at the most reasonable cost possible.

Yeah, that'd be nice. I'll hope for that.

 

Please don't pick on my grammar and spelling, I think fast and write faster, I can't help itif the keyboard can't keep up with my lightening fast wit. I may be younger than you but by not much. Short sellers and stock bashers are the worst specimens on Wall Street, they only enrich hedge funds, destroy companies and harm the majority of investors. Another 20 something "genius" hedge fund manager, not my idea of someone adding value to society. It is a zero sum game, while she might harm a company's market cap, there are actual people losing money while she gains, a zero sum game.

 

Doubtful the schools would survive a bankruptcy. Adtalem's SEC filings are up to date.

https://www.sec.gov/edgar/browse/?CIK=0000730464

 

Ross and AUC should readily find a buyer, e.g., Manipal, Medforth, or R3. I'd be surprised if buyers or a buyer weren't found for Chamberlain and Walden, e.g., APEI or SEI.

 

I said "Some day." I'm talking quite a while down the road on this. I'm not sure what, if anything, SEC filings today have to do with it. And I'm sure the schools would survive - as @Jonathan Whatley pointed out. New (and hopefully way better) prospective owners would be eager. Often, an ailing corporation sells assets piecemeal to pay off pressing creditors, until only a husk is left. Then, if the husk still has significant liabilities, it goes into bankruptcy. I can certainly see that being an eventual possibility here. I don't see it as near-term.

Ross University School of Medicine has been a great success story. We've talked about its origins and progress on DI before. The old threads are good reading. It was operating long before Adtalem came into the picture and I think it will be around long after they are gone.

 

Zero sum games are there to be played. Some don't like them - some do. And it may not be a zero-sum game for stockholders. Someone buys a stock on the way down, they might make money on it at some time in the future. Someone sells on the way down - yeah, he may have lost money - but not all of it. Short-sellers don't always take the company to zero. They quit when the strategy isn't working, or it no longer appears that further profit can be made.

Losing part of an investment is better than the race-track. Nobody at the wicket ever says "Well, your horse came in seventh, but give me the ticket and I'll refund part of your $2."

I wouldn't mind seeing no more Adtalem. I don't think that company is good for some of those schools.

 

And the "worst people on Wall St?" I think that would be scam operators, "pumpers and dumpers," etc.
And those people in boiler-shops who push speculative penny issues and other worthless opportunities.
And I'm sure there are likely a few investment lawyers around there who are not highly thought of...

"Worst on Wall St." -- What an über-competitive nightmare!

 

I still admire Fahmi Qadir, for her high-level skills, knowledge and strategic abilities. And her wardrobe. It helps. My take: she's a star.
If what she is doing were illegal - or even unethical, as I see it, I would not admire her. I might still look at her, though.