Biggest loser of the day: Bridgepoint Education (BPI)

Shares of Bridgepoint Education, Inc. (NYSE:BPI) are taking a kick to the groin today, down 16% on news of potential fines.

Thursday, the company said that the Education Department's Office of Inspector General is expected to present findings from its compliance audit of Ashford University, based in Clinton, Iowa, within the next 30 days. The audit focuses on compensation of enrollment advisers, Title IV issues, student authorizations to retain credit balances and maintenance of supporting documentation for students' leaves of absence.

The audit began in May 2008 and covered the period of March 2005 to June 2009.

Bridgeport said it expects the "report will assert findings of noncompliance and include draft recommendations to the Office of Federal Student Aid with respect to fines and corrective action."

Ashford University will have an opportunity to resolve any findings and recommendations, the company said.

"We intend to cooperate fully with regulatory authorities and will respond appropriately once we have had an opportunity to review the...draft audit report," said Andrew Clark, CEO of Bridgepoint Education.

Fellow Masters, it's time to put BPI on your watch list. This kind of thing happens all the time, it's called a fire sale.

BPI is going to experience some huge growth in the next few years, just look at their revenue estimates for December 2010:

This is just a blip of bad news about an audit, we don't even know what kind of impact it's going to have on the company, if any.

Keep an eye out for BPI to drop to the $10 level, then buy for value.

BPI 1 year chart: