Noah Education (NED)

According to NED:


"We are a leading provider of interactive education content in China. We develop and market interactive, multimedia learning materials mainly to complement prescribed textbooks used in China’s primary and secondary school curriculum, covering subjects such as English, Chinese, mathematics, physics, chemistry, biology, geography, political science and history. We deliver our content primarily through handheld digital learning devices, or DLDs, into which our content is embedded or subsequently downloaded at over 8,500 points of sale, approximately 2,000 download centers, or through our website, www.noahedu.com. In addition, we sell electronic dictionaries, or E-dictionaries. In July 2007, we began offering after-school tutoring programs as we build upon our experience and brand to capture more market opportunities in the supplemental education market. According to CCID Consulting, an independent market research company, in 2006 and the first half of 2007, we were ranked No. 1 by revenue and by the combined number of DLDs and E-dictionaries sold, and No. 2 in 2006 and No. 1 in the first half of 2007 by revenue and by the number of DLDs sold, among interactive education content providers that distribute content through DLDs and E-dictionaries in China." If you want to read more about the company, you can see their SEC filing here: http://www.sec.gov/Archives/edgar/data/1411825/000119312507206144/df1.htm





Well this is one IPO I am sure glad I missed out on... the stock has dropped over 50% since its IPO a few months back, due primarily to whatever reason causes people to buy / sell Chinese stocks nowadays, which generally has nothing to do with company performance.


With a The stock seems to be fairly priced at this point, due primarily to uncertainty regarding how long they can keep up their torid sales growth (40% YOY for the 1st quarter ended Sept 30, 2007), but expected to level off to about 30% of YOY growth for the year ended June 30, 2008 (their estimates).


While I am generally leary of Chinese stocks, especially rather nascent companies over there with brief operating histories, this one may atually be a bit of a hidden gem.


Outperform (2 out of 3, due to limited history, and the ambiguity of financial information on Chinese stocks).