Yahoo Finance shows that EDU has 840M, almost a third of its market cap, in cash.
It must be insanely profitable. Yet 840M is less than China population of over 1 billion.
Just imagine how much money EDU would make if every
person in China starts studying english in an EDU-owned school and taking GRE and
TOEFL in EDU-administered tests. Growth possibilities are (almost) unlimited.
If a stock that one likes goes down so much in a single day and the fundamentals
haven't changed, one is supposed to buy more. Of at least talk your parents and friends
into buying it. Just first do your DD to really understand where the profit margins come from
and to be comfortable holding this stock till you retire.
Functor - I agree, but this Chinese accounting nonsense may very well have changed the "fundamentals" of investing over there. Sure, the numbers are great, but can it reach it's stock price potential when people are losing trust by the minute? I hope so.