No. of Recommendations: 2
I wear scars from the Tenet Healthcare fraud, and the Lucent fraud.
About this time last year, I bought some Stride Inc. They make canned K-12 online educational materials. I figured they are well positioned to benefit from an administration that is openly hostile to public education.
The stock took off like a Polaris missile. That made me nervous. A well established company, in a boring sector, should not perform like that.
In September, one of their customers sued for fraud, claiming management wildly exaggerates the effectiveness of their programs. The stock took quite a hit. But, I heard the "F" word, so sold.
Had not looked at the price in a while. Pulled up LRN today. $72. I thought "hmm, must have split". The news feed on bubblevision's web site didn't say anything about a split. I asked the Google net sifter. It said the stock had not split. Looked at the company web site. No split announcement. Pulled up the news feed on Yahoo Finance. The company issued new guidance last week. Mr Market didn't like it, and gave the stock a 50% haircut.
Maybe not every claim of fraud is a short looking for a quick buck?
Steve...letting off some steam
