2) New Oriental Education (EDU) had a very solid quarter but its valuation is so high here that I sold down the position aggressively this morning up 11% - I missed the real spike as I was not at the computer but good enough; the stock is now down to 0.2% of the fund. Love the long term prospects but at well over 60x 2007 estimates it is just too pricey relative to its current growth. I know the market right now doesn't care about valuations with anything Chinese, but I still do. Further, the stock is also overextended and not near any near term support. I am starting to see a lot of charts like that in sectors I like, so much like Baidu.com (BIDU); when there is such an air pocket below the current stock price, when things do turn (as they eventually will do) the sell off can be quite violent. So I will be awaiting there with open arms on some of these names.
- New Oriental Education, which provides private educational services in China, said its fiscal first-quarter net profit rose 55.1% to $33.9 million or 23 cents a share as total net revenue rose 42.5% to $81.1 million. The group said total student enrollment in language training and test preparation courses rose 30.5% to around 440,500. For the second quarter the group expects net revenue to be in a range of $28 million to $29.8 million.
I plan on having both these stocks in the portfolio for the long run, but want better prices to build positions. As an aside in my search to see what news is driving Core Laboratories I see a Cramer story touting CLB, infrastructure, Mosaic, all agriculture, and the American solar stocks. Sounds vaguely familiar, eh? ;) I will say I found Core Laboratories, and Foster Wheeler over a year ago due to Cramer! However while he is saying buy buy buy today, I say 'overextended' today :)
Long Core Laboratories, New Oriental Education in fund; no personal positions
