<Shares of Chinese private educator New Oriental Education & Technology got sent back a grade after reporting earnings that exceeded expectations. Maybe it's the market that should be wearing the dunce cap.
Not only were results ahead of forecasts, but guidance was in line with what analysts were expecting, so getting detention as it did doesn't make much sense. What seemed to spook investors was narrowing operating margins. Because of New Oriental's expansion plans -- it wants to open 100 to 110 learning centers, with about a fifth of them being so-called VIP classes with fewer students -- margins will get pinched from the smaller class sizes.
New Oriental appears to have sidestepped the cloud of doubt hanging over a number of Chinese issues, and unlike U.S. counterparts Apollo Group (Nasdaq: APOL ) and Corinthian Colleges (Nasdaq: COCO ) , which are fending off potential increased regulation of for-profit schools, it has clear unfettered growth prospects.
Highly rated CAPS All-Star member kkconway recognizes the importance of education to the Chinese and their access to it in a growing middle class:
Day traders are playing with this stock like cat and mouse or orca and baby seal -- sorry --it's just lunch. But that only makes this a great time for buy and holds to pick some up on the cheap! Oh, did I mention millions of Chinese only children indulged by their parents with the best of everything? EDU is growing on back of that trend.
Add New Oriental Education to your watchlist and let us know in the comments section below whether you think it will move to the head of the class>
all those companies are complete POS's. Sure, I have had a few go against me, but I am correct and I have done extremely well, especially with companies under SEC investigations like CVBF. You would dream of doing near as well that's why I have time to bash, because it pays well!!
In the long run I LOVE EDU!
poor poor seasaw. a few months ago he was so happy and feeling smart because his shorts were working. now look at him. let's take a look at this fool's favorite shorts, sprd and hrbn. sprd is up about 75% in the less than three months. hrbn is up about 35% in the same amount of time. this loser keeps howling at the moon about fraud this, fraud that because he made some money shorting crappy chinese companies awhile ago. now that strategy is all he has so he needs to keep pushing it. this is his thesis.....i made some money shorting some crappy chinese companies, ergo ALL chinese companies are crappy. is this logical? when you ask him to provide facts on his "fraud" thesis, he says that all you need to do is look at the financial statements and it's obvious, but he conveniently neglects to mention what is wrong with the financial statements. i know there have been and are still some crappy companies out there (chinese and non-chinese) but there are also some good companies out there (ie. sprd). seasaw doesn't know the difference because he doesn't really know anything about investing; all he knows is shorting stocks and then going on message boards and howling at the moon. anybody want to follow him off the cliff, go right ahead. i have created my own thesis....seasaw shorts, ergo i go long!
you are an a*s....If you think this guy can fool the people from all these comapnies,he must be the best pitch man out there. Now go crawl back under your rock.
Top Institutional Holders
Holder Shares % Out Value* Reported
JP MORGAN CHASE & COMPANY 11,585,392 7.46 1,294,319,994 Jun 30, 2011
FMR LLC 8,451,152 5.44 944,162,701 Jun 30, 2011
LONE PINE CAPITAL, LLC 6,994,452 4.50 781,420,177 Jun 30, 2011
MORGAN STANLEY 6,018,572 3.87 672,394,863 Jun 30, 2011
JOHO CAPITAL, L.L.C. 5,714,836 3.68 638,461,477 Jun 30, 2011
MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT LLC 4,237,500 2.73 473,413,500 Jun 30, 2011
THORNBURG INVESTMENT MANAGEMENT INC. 3,364,712 2.17 375,905,624 Jun 30, 2011
BAILLIE GIFFORD AND COMPANY 16,510,924 10.63 1,844,600,429 Jun 30, 2011
OPPENHEIMER FUNDS, INC. 2,977,200 1.92 332,612,784 Jun 30, 2011
ALKEON CAPITAL MANAGEMENT LLC 2,861,828 1.84 319,723,424 Jun 30, 2011
Top Mutual Fund Holders
Holder Shares % Out Value* Reported
FIDELITY CONTRAFUND INC 3,006,952 1.94 91,712,036 Aug 31, 2011
MORGAN STANLEY INST FD TR-MID CAP GROWTH PORT 2,818,512 1.81 314,884,160 Jun 30, 2011
OPPENHEIMER DEVELOPING MARKETS 2,567,000 1.65 297,309,940 May 31, 2011
MATTHEWS ASIA FDS-MATTHEWS PACIFIC TIGER FD 2,057,600 1.32 229,875,072 Jun 30, 2011
MATTHEWS ASIA FDS-MATTHEWS CHINA FD 2,020,800 1.30 225,763,776 Jun 30, 2011
CALAMOS GROWTH FUND 2,000,000 1.29 255,460,000 Jul 31, 2011
PRICE (T.ROWE) INTERNATIONAL STOCK FUND 1,746,400 1.12 195,107,808 Jun 30, 2011
ADVANTAGE ADVISERS XANTHUS FUND, LLC 1,278,164 0.82 142,796,482 Jun 30, 2011
FIDELITY FUND 1,272,000 0.82 38,796,000 Aug 31, 2011
SMALLCAP WORLD FUND 1,180,000 0.76 131,829,600 Jun 30, 2011
Hi seasaw. I was following your posts on SPRD and you told me to short shares when it was 13. now it's 23.50. Nice call!! Thanks a lot! What happened to your fraud theory? Why aren't you posting on that board anymore? Loser!
Just kidding! I was buying since $13, long shares and calls. Made a bundle because of your posts. Again, thanks a lot! Up over $400k in about two months! Are you on this board trying to convince folks about another fraud?? Good luck moron!
People, people, people. I don't know who Seasaw works for, but please do your own DD and don't listen to this fool! He is a big time loser!
I am not attackin the CEO, I am stating facts about him. If you don't want to deal in facts and just want to ignore them, the obvious conclusion is that you are part of the fraud. If you actually believe the financial numbers, you are some kind of dope.
You are funny. I have to give you that. For an ignoramus you sure can be entertaining.
I love how closely you follow the script, like an anxious second grader eager to please his teachers. Is that what they pay you for? Your second grade commentaries on stocks and investments?
In a few posts you should proably be cussing if you follow the script. Personal attacks on any poster who makes sense, isn't that the plan?
You do reralize that nothing any of us do or say on these boards affects the price or movement of the stock right? You are not that stupid and ignorant as to believe anything else I would hope.
You still have not offered one tangible piece of financial evidence. Only personal atacks on the CEO of the company. If you did not use POS so often in your posts they'd be half the size. But nothing of substance. Soon you will be on ignore you buffoon.