It Pays to Learn English

The young superstar, EDU, was up 12.56% Monday on volume 368% larger than average as it closed at a new all-time high. Below are the links to the extended coverage I have given EDU over the past ten months.

Yes, I did sell a portion of my shares early but the stock has become a trending superstar. The weekly chart is a perfect example of making higher highs and higher lows without violating any major trend lines.


The institutional holdings and the potential of their products and services is what truly caught my interest. The institutional holdings are still looking solid but not as good as they looked back in February. And yes, the bull in the Chinese market helped!

EDU, New Oriental Education, Added on 2/6/07 at $36.93, +104%

Here are some of the comments I made during my initial coverage:

Not a lot of data exists for the young Chinese stock so I wanted to take the time to focus on institutional holdings and the amount of shares that have been accumulated so far (the first reporting period). As you can see below, the majority of new institutional investors loaded up over the past couple of months and I suspect that it all started in November when volume surged and the price accelerated from $26 to $33.

I like when I see $227 million worth of shares purchased and 93 new institutional holders versus only $770 thousand worth of shares sold. This shows me major support and interest by the so called “smart-money”. The company sounds interesting and looks to have an excellent market (a description is below).

Held by Institutions: 13.10%
Money Market: 45 (42 new positions)
Mutual Fund: 51 (50 new positions)
Other: 1 (1 new position)

Shares Bought last Period: 6,313,271
Shares Sold last Period: 22,600
Value of Shares Bought: $227,073,203
Value of Shares Sold: $770,637

Current Institutional Holdings:
Held by Institutions: 174
Money Market: 91 (25 new positions)
Mutual Fund: 78 (23 new positions)
Other: 5 (2 new positions)

Shares Held: 23.480 mil
Shares Held Previous Period: 19.552 mil

Shares Bought: 7.12 mil
Shares Sold: 3.19 mil
Value of Shares Bought: $447.5 mil
Value of Shares Sold: $200.7 mil


About New Oriental
New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental’s ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol ”EDU.”


  1. Witness the evolution of the next Cisco =====> VMW !!!!!!!

    Earnings is Oct. 24.

    The last day to buy the stock cheap is immediately after earnings. Get buying!

  2. Beanie,
    I have a play heading into next week’s earnings! It deals with options, something I don’t talk about much on the blog becasue I am no expert in that area.

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