NEW YORK, July 29, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on ITT
Educational Services Inc. (NYSE: ESI). Select highlights from the
internally released reports are being made available to the general
public (included below), with access to the entirety of the
research available to new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=ESI
Highlights from our ESI Report include:
- Response Statements by Management - On June 25, 2015, ITT Educational Services Inc.'s
(ITT) Chief Executive Officer, Kevin
Modany mailed a letter to certain shareholders, in response
to a letter from Mr. Rohit Chopra, a
former student loan ombudsman for the Consumer Financial Protection
Bureau (CFPB). Kevin Modany stated
that Mr. Chopra's letter is a misleading attack against the
for-profit education sector, seeking to trade on and profit from
his government experience. Prior to this, on June 24, 2015, the Vice President of government
relations and external affairs for ITT, Nicole Elam, issued a statement regarding the
same, which said, "Allegations are not facts and we think our
investors will not take action based on simple assertions from
someone with an ideological axe to grind."
- ITT to present the case in the court of law - As per the
letter published on ITT's website, the CEO believes that Mr. Chopra
is misusing his former positions in an attempt to influence the
corporate affairs of the Company. As per Kevin Modany, Mr. Chopra's letter expressed
myopic and misguided views for the sector that he was previously
responsible for regulating. Kevin
Modany also stated that timing and tenor of Mr. Chopra's
attack has raised troubling questions about his compliance with
basic standards of ethics, as his letter comes just after three
business days of his resignation from office, which otherwise
prohibits him from commenting on pending litigation.
- Unproven Allegations: The CEO further stated that ITT is
highly regulated at both the state and federal levels, and the
Company has not been found by any court to violate any law, state
or federal. Kevin Modany informed that Mr. Chopra's
outlandish claims about supposed "legal infractions" by ITT and its
longstanding management, are baseless and are just unproven
allegations. According to the CEO, ITT is not only vigorously
defending those unfounded allegations but is also looking forward
to present its case in a court of law.
- Non-disclosure of facts by Mr. Chopra - While citing a
few examples, wherein ITT was given a clean chit by various courts,
the CEO stated that Mr. Chopra cited a case in his letter, where
the judge dismissed a large part of the CFPB's case at the first
stage of the litigation. According to the CEO, Mr. Chopra has
not disclosed actual facts to the investors or media as the private
loans at issue in the case were never offered by ITT, and have not
been offered at all for almost half a decade. The CEO stated that
Mr. Chopra's letter ignored many positive facts about ITT. ITT has
been a leader in achieving better student outcomes, at lower cost
to taxpayers, and has awarded scholarships to more than
$260 million. Consequently, no ITT
students have needed to take out private educational loans in the
past four years.
To find out how this influences our rating on ITT Educational
Services Inc., read the full report in its entirety here:
http://www.aciassociation.com/?c=ESI
About ACI Association:
Active Charter Investors Association ("ACI Association")
produces regular sponsored and non-sponsored reports, articles,
stock market blogs, and popular investment newsletters covering
equities listed on NYSE and NASDAQ and micro-cap stocks. ACI
Association has two distinct and independent departments. One
department produces non-sponsored analyst certified content
generally in the form of press releases, articles and reports
covering equities listed on NYSE and NASDAQ and the other produces
sponsored content (in most cases not reviewed by a registered
analyst), which typically consists of compensated investment
newsletters, articles and reports covering listed stocks and
micro-caps. Such sponsored content is outside the scope of
procedures detailed below.
ACI Association has not been compensated; directly or
indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by
a writer (the "Author") and is fact checked and reviewed by a third
party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"),
provides necessary guidance in preparing the document templates.
The Reviewer has reviewed and revised the content, as necessary,
based on sound investment judgment and publicly available
information which is believed to be reliable. The Reviewer and the
CFA® have not performed any independent investigations or forensic
audits to validate the information herein. Unless otherwise noted,
any content outside of this document has no association with the
Author, the Reviewer, or the CFA® (collectively referred to as the
"Production Team") in any way. The Production Team is compensated
on a fixed monthly basis and do not hold any positions of interest
in any of the securities mentioned herein.
NO WARRANTY
ACI Association, the Author, the Reviewer and the CFA®
(collectively referred to as the "Publishers") are not responsible
for any error which may be occasioned at the time of printing of
this document or any error, mistake or shortcoming. No liability is
accepted by the Publishers whatsoever for any direct, indirect or
consequential loss arising from the use of this document. The
Publishers expressly disclaim any fiduciary responsibility or
liability for any consequences, financial or otherwise arising from
any reliance placed on the information in this document.
Additionally, the Publishers do not (1) guarantee the accuracy,
timeliness, completeness or correct sequencing of the information,
or (2) warrant any results from use of the information. The
included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or
a solicitation of an offer to buy or sell the securities mentioned
or discussed, and is to be used for informational purposes only.
Please read all associated disclosures and disclaimers in full
before investing. Neither ACI Association nor any party affiliated
with us is a registered investment adviser or broker-dealer with
any agency or in any jurisdiction whatsoever. To download our
report(s), read our disclosures, or for more information, visit
http://www.aciassociation.com/.
RESTRICTIONS
ACI Association is not available to residents of Belarus, Cuba, Canada,
Iran, North Korea, Sudan, Syria
or Somalia. Do not send email to
robottrap (at) aciassociation.com.
CFA® and Chartered Financial Analyst® are registered trademarks
owned by CFA Institute.
SOURCE www.aciassociation.com