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Logan Shearer's avatar

I’ll give some of my thoughts as someone who 1. Likes Legacy but 2. Hates for profit Ed stocks and 3. Hates companies incorporated in Nevada: they seem to be lower risk than the rest of their sector, you notice that post acquisition the graduation metrics increase each year at the unit level. On a comparable basis the quality is much higher. Education, like pharma, is a litigious environment but comparing Legacy to PRDO or Adtalem it’s much cleaner. I view them more like LINC or UTI. As to the Nevada thing, the company went public very young and lacked a lot of internal controls that it seems like they are trying to clean up. I wouldn’t be shocked if they move to Delaware later.

Logan Shearer's avatar

I have a buddy who has and he’s I’d say 70% confident that their trustworthy

The Illiquid Edge's avatar

I like the probabilistic read there.

Yeah this is a tough one to judge from the outside. I personally err on the side of conservatism (when in doubt, throw it out), but I understand the view of those who are invested in this.

The Illiquid Edge's avatar

Thanks for your thoughts. Have you spoken with management or heard from them at all? I would like to know how trustworthy they are, but cant get a read on that