KGIC Inc LGLTF

Whats next..???

[Hawkeye2012]

The last quarter was the big one for ESL schools.  Enrollment is always down for an ESL school in the late spring and summer months. LOY needs to consolidate a lot more than it has in over the past year. MTI remains relatively untouched operating the same as before LOY bought it. My guess is that Mr. Ryu has realized that it is not an entity that can be absorbed into LOY. International students want nothing to do with the programs offerred by MTI( something Sprott Shaw learned with KGIC) . Now that Bev Reid has quit, that school is in for a world of hurt with Mr Ryu at the helm especially as he has no experience running community colleges. 

KGIC for the most part is LOY( profit wise and staff wise)and Mr Ryu is struggling to find schools of this size that will sell to him. We have seen what happens when he buys WTC , PPC and UCL. SEC will most likely fade into oblivion over time as well. The stock is faltering becuase LOY has drifted from its original promises. "Buy quality schools and consolidate operations".

KGIC is profitable but Mr Ryu paid way too much. Its profits are based on a model that requires a large service orieinted staff. This is something that Sung and Mr Ryu have been disagreeing since the purchase of KGIC. For now Sung is getting his way but  undoubtedly Mr. Ryu will slash and burn that group of schools..its just a matter of time.