Corinthian Colleges, Inc. (COCO)

TMFPhila (87.81) Submitted: 12/12/2008 2:30:58 PM : Start Price: $15.85 COCO Score: +31.64

Their $100m subprime loan business will do them in. Yep, you read that right. After SLM told COCO earlier in 2008 that it would no longer lend to subprime borrowers, COCO put together their own $100m subprime business for which they assume all default risks. Worst of all, they put this business together in a matter of six weeks and are currently in the process of "learning as they go," according to management. Furthermore, the return on investment for their programs is terrible. People graduate with thousands of dollars in loans, part of which carry interest rates in the teens, and make between $15-20 an hour on average. This is a desperate company preying on desperate individuals. The CEO himself says the company's primary focus is on fundamentally subprime borrowers and the unemployed. Take a look at their pending litigation -- incredible. They caught a lot of legal heat in 2007, one from the California AG, and the feds raided their Florida schools in October. Funny thing is, a few weeks after the raids they changed their Florida program's name to "Everest College."