GREY:LGLTF - Post by User
Comment by
Hawkeye2012on Jan 13, 2015 6:16pm
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Post# 23315765
RE:RE:.30s
RE:RE:.30sThe reason it is only Korea is becuase that is what Mr.Ryu is comfortable with. His offers to buy reputable schools in Canada have been consistently refused. The question must be asked why a Korean CEO needs to buy Korean Agencies?
One would think they could Korean students without having to but an agency.
Schools do not buy agencies as it is an industry taboo. Its not like other schools have never thought of this. Many schools who have had low enrollment have been tempted to do so but know that it would mean a major backlash.
Also if a student goes to a LOY school it looks at first like they are cutting out the middle man. However LOY is also the middle man now and are cutting out the profits of their own agencies.
Judging by the recent reaction to this stock, investors seem to be aware of these points.
Acquisitions that actually result in a decline in the stock price was not what he was expecting. Mr Ryu is running out of options.
A new school that aquires a signficant market share should have been what we saw, not this act of desperation to increase student enrollment from a market that should be a no brainer for a Korean CEO.