Corinthian Colleges Inc ( NASDAQ: COCO ), stock of the company jumped more than 38% in the morning trade as company announced a partnership with custom motorcycle shop. Volumes and options activity are trending a bullish breakout as per below. There was a spike in yesterday's trading session.
Our Call: Buy positions for trade and investment purpose.
Below is the news:
"Orange County Choppers" is a hot trend Thursday after WyoTech, a division of Corinthian Colleges(COCO),announced a partnership with the custom motorcycle shop.
Under the partnership, WyoTech students will help construct a custom-built motorcycle with the guidance of OCC founder Paul Teutul Sr., and students also will intern at the facility in upstate New York. The bike will be revealed this fall on an episode of "American Chopper" on the Discovery Channel.
Options Activity:
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| Corinrhian Colleges Inc |
The COCO June 4 calls were the second-busiest contract, trading more than 5,000 times for $0.15 to $0.30. CECO's June 23s and June 24s followed with volume of 4,301 and 3,640, respectively.
Including ITT Educational Services, overall option volume in the group was 8 times greater than average. Calls accounted for a bullish 78 percent of the activity in the four names, with purchases dominating the order flow.
The stocks have been getting killed since April 2010 after government officials expressed an intention to tighten student-loan standards. The 12-month declines range from 17 percent by CECO and 69 percent by COCO, but the stocks have shown signs of stabilizing in about the last month.
Although the rules may seem draconian, the market has already priced in considerable negative news. Given that these companies have considerable short interest, little debt, and trade at deeply discounted multiples, clarity on the regulatory backdrop could draw more investors back to the sector.
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