+ Watch NED
on My Watchlist
The company develops, markets, and distributes interactive education content in China.
Wild guess on this one. It may take some time but I do think they will start to grow. They seem to have peaked last year at like 5 bucks a share, and then tumbled and I am not sure why. If anyone knows, please let me know. I feel the price has been stable aroudn $2 now for quite sometime, not sure if that is controled or what, but I feel it will go back up to 5 and above as time goes on.
Alright, couple of reasons I'm marking this as outperform, none of them related to the specific company at hand. Typically, about twice a year, I'll go to the finviz heatmap:http://finviz.com/map.ashx?t=sec&st=ytdFrom there I'll check the trending 6 months, 1 year, and YTD to find lagging sectors.Once I find the lagging sectors, I'll do a quick analysis of the macro variables at hand and determine whether the secto is warranted to be under performing the market or whether I think the market has undervalued these sectors. In this case, I think O&G exploration and development as well as utilities are undervalued.If you notice, pharmas are also undervalued, but I think the new healthcare law makes their underperformance relevant at this time - if they continue to be undervalued at the time of my next review, I may pick up some in the sector.I digress, the reason I think O&G and utilities are a good buy at this time:1. Winter is fast approaching2. Energy prices are still comparatively low and will go up3. The economy is rebounding4. The oil spill worries are becoming something of the past for the majority of Americans (Personally, I hate that recency plays a factor in this at all)5. Likely republican majority in one chamber will make it difficult to pass major energy reform, thus old energy wins and new energy loses. (Much to our malevolence)After I determine which sectors to buy, I'll review each individual stock in CAPS. Anything less than 3 stars gets filtered out. 4 and 5 star picks are most preferable, as these quintiles usually gains points in a year's time.I expect to remove 90% of these stocks by March/April. Typically, this nets me a few hundred caps points (read: profit), and roughly 75% accuracy. Some will be bombs or laggards. Those that barely lag will be kept on my portfolio in hopes that I may eke out a slight gain at a later date. The bombs will be dropped.I want to emphasize, this is not a judgment call on this specific stock. I didn't even check the financials. Do your DD if you buy in RL. In fact if you like the sector and want to buy in RL, I recommend you buy a sector ETF - one of my personal faves is FCG.
I sure hope I don't regret this...
PE of less than 10 and selling for cash....
As the people of China become more affluent, more demand will be for their products.
Much to learn, youngling. Much to learn.
It's hard not to like this company's valuation.And yet, I am thinking of Chuck Prince's quip that you have to dance as long as the music is playing in reference to banks and the mortgage game/impending disaster. China's emerging middle-class will take a few lumps sometime in the next couple 'o years. There is a huge credit bubble that is waiting to explode from (1) an artificially cheap currency, (2) excessive government lending to businesses, and (3) excessive private lending to other private enterprises. I think that the unraveling will occur when the uncollectable A/R start to make themselves felt.
Chinese are among the world's most dedicated societies at all levels in the areas of intelligence and education...too, the Chinese also are savers to the nth degree. These factors combined with their emergence as a computer based society makes NED a natural.
I don't think you can go wrong with this stock, it has surpluscash, and in this day and time you have to have an educationfor the most part to make it these days.
buying chinese education
This integrated education company is significantly undervalued and operates in significantly scalable and fast growing education sector in China.
Solid company, good balance sheets, emerging market. Chinese invest in education, once more money flows back into the market, this stock will pick back up.
Lots of cash; no debt; great return on capital; great margins; P/B about 1; P/cash flow < 10 = outperform
Chinese education reform will likely drive increasing numbers to private supplemental education. NED has is selling cheap and has lots of cash. Significant possible upside here is worth the relatively low risk.
Education is very important. 6 adults in family spending savings on each child on their education. Goverment support. Desire to learn English etc. Good Earnings, Low PE, Ned is aquiring other companies. Pay a nice dividend. Etc
edumacation for the chinese masses
China's governement drops a stimulis package with a high precentage of it going to education. Plus I like China in general.
Pretty much trading at book value (pretty much all short term assets). That's enough - but add in steady revenue and earnings growth - and you have a good opportunity.
This Chinese company appears poised to really take off. I am somewhat leery of the China market, but with almost no debt, this stock seems to be worth keeping an eye on.
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