The report says “Citron believes that management of Grand Canyon has been both incompetent and deceitful in its ability to transform the school to adapt to the rapidly changing for profit education space.”
Citron also say that “[t]he corporate structure between Grand Canyon Education [“GCE”] and Grand Canyon University [“GCU”] is one that the SEC should investigate. GCE’s revenues are almost entirely from Grand Canyon University. Having a captive customer that is 90% of revenues with the same CEO and no “Chinese wall” does not pass the smell test.” Additionally, “Citron believes GCE is stuffing GCU with expenses to inflate its own profitability and as a result bankrupting GCU.”
Citron says “In light of the significant fraud we have uncovered, we are lowering our Price Target from $30 previously to $0”
This is not a recommendation to buy or sell. Stocks are not suitable for everyone. Some of the stocks mentioned are risky small cap and/or highly speculative. Please do your own research.