RE:WORTHLESS
parahyangam wrote: GEC never had the in house assets or income to finance the real estate required to support its claimed net rental income.
After debt, limited partnerships and operating costs, thousands of beds were required to generate the huge net rental income on GEC's financial statements. This 'real estatee' would have constituted a behemoth in the student rental industry, which in fact does not exist anywhere outside large financial institutions such as pension funds.
Most of GEC's education services are in entry level occupations such as in the hospitality industry, nurse's aides, etc. Most of those students had day time jobs and lived in existing housing. Many of GEC's 'schools' lie outside the Vancouver area and thus operations are substantially decentralized which in part explains their high costs.
It has been years of flat line performance with the vaunted and promised growth never materializing. Strip out the rental income and the 'capture' of real estate appreciation and you have nothing.
Company isn't even trying anymore with the vaunted Buyback Program.... and inside buying has dried up. gee soon the top shareholders will just take the company private... convenient eh.. that the price has shaved in half. Crappy management and bogus projections aside, anyone who's managed a real estate company in Vancouver and achieved THESE results the past 5 years should take a massive pay cut. Major failure... Zero for shareholders.