The report includes earning projections for K12, Inc., the company that operates Ohio Virtual Academy and Ohio Insight Academy, which is closing at the end of this school year. K12 Inc. is expected to grow in earnings by 42.2 percent this year. Not a bad return! Earnings translate to less money spent on students. It is sad that leadership in the U.S. Department of Education now has a profound effect on education business stocks.
People with inside information about K12, Inc. report that the organization takes about 19 percent of the charter school funds off the top for company purposes. Yet when irregularities have been reported in student enrollment practices in Ohio Virtual Academy, state officials have been silent.
Marketplace education operations allow a few persons to accrue profits at the expense of school children. In the case of K12 Inc., it is as if about 20 percent of a child’s school lunch is held back for high food consumption adults.
Some greedy people are too hardened to blush.
This post is NOT a suggestion that anyone invest in the stocks referenced in the attached report. Far from it! It sheds some light on K12, Inc.