Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ms. Sara Gubins - Merrill Lynch & Co. Please proceed ma’am.
Sara Gubins - Merrill Lynch & Co.
Could you talk a little about the automotive market? Is it just really a perception given what is happening in Detroit or are your students or graduates also are finding it harder to find jobs?
Cesar Ribeiro
Well, Sara I think that certainly the news at Detroit is impacting our starts to some extent. We had our high school starts this year which I mentioned up by 5% and we see continued interest in our program across our campuses. With that said we talk to our placement people and we look at the market we are seeing a shift in placements from dealerships to independent service centers to some extent. Where consumers keep their cars longer would certainly going to require more service and maintenance so I think the automotive resolved perception or not but the certainly the end result is lower automotive car sales many of the dealership are cutting back particularly in the sales area but I think over all there is a strong demand for automotive and we feel very good about it. I guess the other point I’d make is we have many schools that are offering the automotive area and other programs such as diesel inclusion where the demand continues strong.
Sara Gubins - Merrill Lynch & Co.
Okay great, thank you. And just another follow up, Cesar I think your last comments about how much you thought you were need to loan on your own balance sheet, I just want to make sure I understood it. Were you suggesting that you would not need to do more 5 million in new private loans from your balance sheet in 2009? Or do I misunderstand that?
Cesar Ribeiro
That is correct. I think what we believe now is starting in 2009 our incremental investment and net account receivable will not exceed 5 million.
Sara Gubins - Merrill Lynch & Co.
Okay and with that taken into account? Students who had gotten loans in 2008 repaying them in 2009? Or is that --
Cesar Ribeiro
Yes that is the net investment so that would include new loans granted as well as repayment of the existing loans.
Sara Gubins - Merrill Lynch & Co.
Okay. Give us me some sense of what you are expecting bad debt for the fourth quarter to begin to 2009?
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