Given all this, the way K12 presents itself to investors is fascinating (all emphases mine):
Now I would like to make some brief comments on the elections. First, I would like to congratulate President Obama in his reelection. Secretary Duncan has done a fantastic job over the past 4 years, advancing things like common core, school choice, innovation education, and we look forward to additional progress over the next 4 years. He has always been an innovator since he first became CEO of Chicago Schools and helped create, in partnership with K12, one of the nation's first hybrid schools. That school, which is managed by K12, was recently named one of Chicago's Best High Schools by Chicago Magazine. We are also quite excited by several other election results. It was especially encouraging to see that the voters of Georgia overwhelmingly supported an amendment to allow charter schools in the state. This is a significant milestone for educational liberty. There were several other initial positive developments, Tuesday, that we believe should help advance K12's mission of providing expanded learning options for students.A milestone of educational liberty... or a milestone for K12's bottom line?
Kelly A. Flynn - Crédit Suisse AG, Research DivisionThe only way their business model works is to have a favorable political climate. The way they get a favorable political climate is to get favorable politicians in office, or pass referenda that support their expansion. They freely admit it, right here.
Ronald J. Packard - Founder, Chief Executive Officer and Director
Kelly A. Flynn - Crédit Suisse AG, Research Division Ronald J. Packard - Founder, Chief Executive Officer and Director
Anyone who tells you ballot questions promoting charter schools are not about profits is just dead wrong.
Need more proof?
Sara Gubins - BofA Merrill Lynch, Research DivisionOh, I'll just bet you were.
- Founder, Chief Executive Officer and Director
ADDING: I guess this call didn't go so well: Mike Klonsky says K12 stock is sinking like a stone.