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Noah Education Holdings Ltd. Message Board

  • ishamshir ishamshir Feb 20, 2008 6:48 AM Flag

    Great Opportunity for the Wise

    For those who may think earnings were not good, please consider the following:

    1. Despite having slight dip in sales because of historically the slowest 2nd quarter and highly overblown sticker issue they posted almost 200% YOY growth and have been able to put the sticker issue behind
    2. They have over $4.00 in cash per diluted share ( US $144.1 Million for 36,022, 820 diluted shares)
    3. They opened 6 new after school tutoring centers making it total of 9 year to date and are targeting to have 40 by the end of June 2008 through acquisitions and organic growth. This type of business model (Test Prep Centers for university going students) has been a huge plus for EDU and certainly going to effectively diversify NED’s offerings.
    4. They have partnered with schools in several provinces where they have been able to demonstrate their products and services to teachers and students directly. They are expanding these partnerships aggressively and going forward this is going to be the corner stone of their growth strategy
    5. They are constantly rolling out new products such as NP1100 with graphic calculator technology and others
    6. Even excluding the effect of 40 new after school tutoring centers (which is estimated to be about 7%) they are projecting a growth of 22%-24% in net revenue and 74%-81% in net income

    In conclusion these are highlights of just few positives of this company which has been consistently profitable and growing at an impressive pace and has ton of cash which is being deployed very wisely(opening and acquiring of tutoring centers and new product developments) to further sustain and increase such growth and profitability. To me at current price this stock offers a huge opportunity for the wise and the patient.

    Request to all serious investors: Please do your own due diligence and at least read the earning report yourself carefully and listen to CC. Do not make up your mind based on false and misleading information from the SHORTS and knee jerk reaction of the sellers in the after hours (who might be confused by estimates on Yahoo finance which are in RMB instead of US $).

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