New Oriental: A Sleeping Giant.
I was attracted to this chart from a Technical Analysis point of view and reward: risk ratio on a potential trade. Price has finally found support at a previous Weekly level after dropping 95% from all time high. It seems as if there is more upside potential than downside potential.
I'm not going to buy here. If I buy, it will be at the fib levels outlined in the chart. A retest would show strength and could incentivise buyers to push volume to the EDU. I'm not sure if I will get that buy but I don't like to chase breakouts. I didn't know about this company until last week.
Reading more about the company and their annual report I was surprisingly impressed. Despite the huge drop in price, the company has actually increased revenue from 2020. They've total assets have doubled from close to five million US dollars in 2019 to 10 million US dollars in 2021. With that said there are some negative components such as decrease in Net Income and Net Profit Margin. Looking at their business model, providers of private education in China, this makes sense. Schools have been massively affected by pandemic.
Some big names have EDU in their portfolio, their largest five holders include Morgan Stanley, Blackrock, Vanguard, Goldman Sachs and Bank of America. According to Yahoo Finance it was also one of Ray Dalio's Bridgewater Associates top ten small cap stock picks. They increased their position size in Q4 by 24%.
I'm not going to buy here. If I buy, it will be at the fib levels outlined in the chart. A retest would show strength and could incentivise buyers to push volume to the EDU. I'm not sure if I will get that buy but I don't like to chase breakouts. I didn't know about this company until last week.
Reading more about the company and their annual report I was surprisingly impressed. Despite the huge drop in price, the company has actually increased revenue from 2020. They've total assets have doubled from close to five million US dollars in 2019 to 10 million US dollars in 2021. With that said there are some negative components such as decrease in Net Income and Net Profit Margin. Looking at their business model, providers of private education in China, this makes sense. Schools have been massively affected by pandemic.
Some big names have EDU in their portfolio, their largest five holders include Morgan Stanley, Blackrock, Vanguard, Goldman Sachs and Bank of America. According to Yahoo Finance it was also one of Ray Dalio's Bridgewater Associates top ten small cap stock picks. They increased their position size in Q4 by 24%.
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