Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

COCO already announced in its last quarterly that bad debt impacted earnings (5% of yearly revenues), they expense these against income (in lieu of carrying it as receivable). The balance sheet does not report "doubtful debt", (often receivable are given less doubtful collectable) since it is charged directly to expense. The growth of such dead beats is slowing down (last Q 4.9% of revenues last one $5% of revenues). This may actually be a source of future revenues to the extent some of this debt is collected in the next few years. I would not worry about bad debts in COCO, it is fully priced in as the "cost of doing business" with "second tier" students.