This company has a market cap of $3.4 million right now and it seems to me that we are in tons of trouble. Not sure we can pull out of this mess folks as it's pretty bad. Dealer and Harry, I like you guys and your feedback but I'm not sure their is anything that you can say that can change my mind? I am so irritated that I bought this piece of #$%$ in the first place. JDT
We ain't seen EDU ,CEDU or any other educational company complain from the economy please don't give them excuses ,they have new 250 million people segment in Beijing alone which EDU is thriving on ,and the unemployment is very good thing also for our company unfortunately for the unemployed because they will need more courses which our company suppose to deliver and they will need to enroll in the vocational or employment list which by the way our company also delivers, the reality is that the management is neglecting the shareholders as a kind of punishment which they don't deserve ,he should not treat us like that,anyway i will wait for the new platform in September if it sucks then i will leave and and admit my huge loss .
I glad you feel that the economy basically has nothing to do with CEAI troubles. I feel the same because even when the Chinese economy was was on the rolling along; CEAI was falling in sales. But the way Mr. Yu does the presentation; he blames the economy, the bad fraud claims made by Kennington(2 1/2 years ago) and the very competitive marketplace for the companies situation in dramatic drop in sales. He claim that the brick and motar facilities back 6 months ago - now should be breakeven this quarter(April-June) too. I cannot wait to see what is happening with these new facilities that have been open for six months or longer. Last CC; only 2 were profitable out of all their existing facilities. Teachers were leaving too and he said that has had a big impact on revenue. Not sure that is true either; since in the Kaplan schools; teachers only last 3-6 months on the average and this company is are doing just fine. It all about advertising to draw in the clients; not the teachers IMO.
Earnings will be like last quarter or worse since China is in a mid of turnaround economy. Much of college educated graduates are doing very poorly in employment. I have read that college graduates have unemployment rates in the 20% for some provinces. Most graduates after 6 months are force to take any job available to live. I not expecting much for this year other then continue losses. Maybe in 2014 it will breakeven. Just holding on for the long term turnaround in China and hope that CEAI will ride the wave back into positive earnings when the Chinese economy recovers. It would be wonderful if CEAI would be brought out or go private. Mr. Yu is not keen on these two options so far. The more he built his business; the worse the economy gets - more fix overhead with less revenue.