GREY:LGLTF - Post by User
Post by
Hawkeye2012on Oct 18, 2013 4:33pm
193 Views
Post# 21829074
A Dangerous game
A Dangerous gameJust some FYI on this comment by Andrew Ryu in
Loyalist Angst - Fabrice Tayor's Response by Foghat
Also in the works is the long-awaited roll-up of agencies. Recall that agencies take 30% of tuition fees paid by students. So buying them would greatly enhance LOY's profitability and margins.
There is unwritten rule in the ESL business that schools are forbidden to run or own an agency as it is seen as a massive conflict of interest. Any agency that hears of this will blacklist any school for obvious reasons. LOY is heavily dependent on agencies supplying them with students. A schools image and reputation amongst agencies is the most precious of all things in the ESL industry. Such a comment by Mr. Ryu shows either desperation or mass ignorance about the industry if this is the plan
Is this kind of news supposed to buoy this stock? Like this is some kind of brilliant revelation. Every school has thought of this. This is just the kind of panic response that will just make things worse...MUCH worse.