"I haven't wavered in my belief that New Oriental Education (NYSE: EDU) is the single best stock I've run into during my 25-year investment career," asserts Tony Sagami in The Asia Stock Alert.
"The company's latest quarterly results only reinforce that belief. The Chinese are signing up in droves for basic English classes that are offered by New Oriental.
"First quarter profits rose $11.6 million, to 29 cents per share, from $8.4 million or 22 cents during the same period a year ago. That, by the way, is well above the 23 cents Wall Street was expecting.
"Revenue jumped from $32.8 million a year ago to $48.1 million, a 47% spurt. That number is extremely impressive given the fact that China was hit with its worst snowstorm in 50 years and caused many classes to be canceled.
"Even with those cancellations, student enrollments increased by 35% to 268,400 during the quarter, while deferred revenue (money collected from students for classes in future quarters) doubled to $35.8 million at the end of the quarter.
The future doesn't look too shabby either. EDU said second quarter revenue would range from $32.1 million to $33.4 million, a 29% to 34% growth rate. Plus, it acquired a 60% stake in Mingshitang, a Beijing-based private school that specializes in tutoring students who want to retake the gaokao exam, the Chinese college entrance test.
"Everything is full-steam ahead for EDU, so definitely hold on to this winner. And if you're a new investors to the China region, this is the very first stock you should put in your portfolio."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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