The contributing editor to UnCommon Wisdom explains, "The Lunar New Year is considered to be a combination of Thanksgiving, Christmas and New Year's all rolled into an elaborate celebration of reflection, gratitude, renewal and hope. It is the single most celebrated holiday in China.

Continue reading Seven Buys for the Chinese New Year

Seven Buys for the Chinese New Year originally appeared on BloggingStocks on Mon, 22 Feb 2010 12:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Wells Fargo upgraded MasterCard (MA) to outperform from market perform on valuation as it views the sell-off in shares following the company's Q4 results as unwarranted.
• Janney Montgomery upgraded Best Buy (BBY) to buy from neutral on valuation as it believes sentiment has gotten overly negative on the stock. The firm raised its target on shares to $44 from $42.
• Citigroup upgraded Gap (GPS) to buy from hold on valuation following the recent pullback in shares and the company's sales results. The firm raised its price target for the stock to $24 from $23.
• Starwood Hotels (HOT) was upgraded to neutral from underperform at Baird.
• Murphy Oil (MUR) was upgraded to hold from sell at Collins Stewart.
• Motorola (MOT) was upgraded to overweight from equal weight at Barclays.

Continue reading Analyst Upgrades, Downgrades and Initiations: BBY, EXC, GPS, H, LEAP, MA, MOT, TAP ...

Analyst Upgrades, Downgrades and Initiations: BBY, EXC, GPS, H, LEAP, MA, MOT, TAP ... originally appeared on BloggingStocks on Fri, 05 Feb 2010 11:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Canaccord upgraded IBM (IBM) to buy from hold, citing the better-than-expected Q4 report, an ongoing economic recovery and higher IT budgets. The firm raised its target to $150 from $130.
• Citigroup upgraded Archer Daniels Midland (ADM) to buy from hold to reflect strength in the oilseed processing market and a positive inflection in ethanol profitability. The firm raised its target on shares to $37 from $33.
• FBR Capital upgraded Tesco (TESO) to outperform from market perform on expectations the company's top drive orders will accelerate in the coming quarters. The firm raised its target price on shares to $18.
• CBS (CBS) was upgraded to buy from hold at Jefferies.
• HSBC Holdings (HBC) was upgraded to buy from hold at RBS.
• Essex Property Trust (ESS) was upgraded to overweight from equal weight at Barclays.

Continue reading Analyst upgrades, Downgrades and Initiations: ADM, CBS, CPO, DOW, DD, IBM, KAR, TSCO ...

Analyst upgrades, Downgrades and Initiations: ADM, CBS, CPO, DOW, DD, IBM, KAR, TSCO ... originally appeared on BloggingStocks on Wed, 20 Jan 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading New Oriental Education Gets Another 'A' for Investors

New Oriental Education Gets Another 'A' for Investors originally appeared on BloggingStocks on Wed, 20 Jan 2010 10:30:00 EST. Please see our terms for use of feeds.

"New Oriental Education (NYSE: EDU), which offers English language instruction to Chinese students, recently fell sharply after disappointing the Wall Street crowd," says Tony Sagami.

In his The Asia Stock Alert. the China stock specialist suggests, "This pullback is creating a buying opportunity. Indeed, this is your big chance to buy it on sale.

"Digging deeper, EDU's numbers contain both bad and good news. Among the good news, EDU earned $1.57 per share of profits last quarter, which is exactly what the consensus forecast was and 27% more than the same period last year.

Continue reading New Oriental (EDU): Language instructor 'on sale'

New Oriental (EDU): Language instructor 'on sale' originally appeared on BloggingStocks on Fri, 13 Nov 2009 15:20:00 EST. Please see our terms for use of feeds.

"The Chinese Dragon strikes again," says small cap expert Jim Oberweis, Jr., adding, "So far in 2009, the MSCI China Index is up 30% and our Oberweis China Opportunities Fund (OBCHX) has gained 62%."

In his The Oberweis Report, he says, "China will be a great place to invest over the medium-to-long term, even if unpredictable in the short term."

Here, the advisor and money manager reveals four stocks that he considers "some of the most interesting Chinese ADRs to buy now: E-House (NYSE: EJ), Asia Info Holdings (NASDAQ: ASIA), New Oriental Education (NYSE: EDU), and Longtop Financial (NYSE: LFT).

Continue reading China expert picks four favorite ADRs

China expert picks four favorite ADRs originally appeared on BloggingStocks on Mon, 22 Jun 2009 12:00:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"New Oriental Education (NYSE: EDU), the largest English instruction and college prep course school in China, is my top pick for 2009 says China stock expert Tony Sagami.

In his specialized newsletter, the Asia Stock Alert, he explains, "Every time I travel to Asia, I'm on the lookout for new ideas; on my latest trip I found that one of the oldest stocks in our portfolio -- New Oriental -- is still one of the very best.

"I've previously attended New Oriental classes in Shanghai and Shenzhen before, and during the Olympics, I visited their home office in Beijing. The registration desk had a steady stream of students signing up for new classes throughout the day.

"Its bookstore was just as busy as the registration desk. The most popular books were Chinese versions of SAT, GRE, GMAT, and TOEFL (Test of English as a Foreign Language) preparation guides, as well as college-specific books.

Continue reading Top Stock Picks '09: New Oriental Education (EDU)

Top Stock Picks '09: New Oriental Education (EDU) originally appeared on BloggingStocks on Fri, 02 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.

"China places high value on education, making New Oriental Education & Technology Group (NYSE: EDU) somewhat defensive in a growth-stunted economy," says Chris Rowe. (Incidentally, we reviewed two U.S. education stocks in a post yesterday.)

Meanwhile, in The Tycoon Report, Rowe explains, "We believe a slowing global economy will have minimal impact on the education sector in China." Here's his review of this firm, which operates English language schools.

"New Oriental Education is a rapidly growing company that provides private educational services to over 1.3 million students via 207 school centers, primarily in the People's Republic of China. They help privately prepare Chinese for admission tests to foreign universities emphasizing English.

"It offers its program, service, and products in six areas: language training; test preparation; primary and secondary school; educational content, software, and other technology development and distribution; online education; and other services and products.

"I consider the stock to be somewhat defensive in a growth-stunted economy. And while you may be able to make large short-term profits on this stocks, the goal in this recommendation is to be very long-term holders.

Continue reading New Oriental (EDU): Educated gains in China

New Oriental (EDU): Educated gains in China originally appeared on BloggingStocks on Tue, 25 Nov 2008 10:55:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Cowen upgraded Aaron Rents (NYSE: RNT) to Outperform from Neutral and believes the company's business model is gaining momentum despite the difficult environment. The firm views valuation as attractive.
  
• Citigroup upgraded shares of MedCath (NASDAQ: MDTH) to Hold from Sell on valuation following the recent sell-off. The company's target was lowered to $9 from $19.
  
• Stanford upgraded AeroVironment (NASDAQ: AVAV) to Buy from Hold based on valuation and because they believe its visibility over the next year has improved.
• Chiquita Brands (NYSE: CQB) was lifted to Buy from Hold at BB&T.
  
• Chico's FAS (NYSE: CHS) was upgraded to Neutral from Sell at UBS.
  
• FCStone (NASDAQ: FCSX) was raised to Strong Buy from Outperform at Raymond James.

• RBC Capital downgraded Clearwire (NASDAQ: CLWR) to Sector Perform from Outperform based on reduced valuation parameters and lack of catalysts. The company's target was lowered to $9 from $15.
• Kellogg (NYSE: K) and Coca-Cola (NYSE: KO) were cut to Neutral from Buy at UBS.
  
• Evergreen Solar (NASDAQ: ESLR) was downgraded at JP Morgan to Underweight from Neutral.
• Deutsche Telekom (NYSE: DT) was downgraded to Neutral from Buy at Goldman and to Hold from Buy at Deutsche Bank.

Continue reading Analyst calls: CHS, CQB, CLWR, KO, K, ESLR, DT, FSLR, NBR

Analyst calls: CHS, CQB, CLWR, KO, K, ESLR, DT, FSLR, NBR originally appeared on BloggingStocks on Tue, 18 Nov 2008 11:11:00 EST. Please see our terms for use of feeds.

In a special report on investing in China, global expert John Christy looks at New Oriental Education (NYSE: EDU). Here's the latest from The Forbes International Investment Report.

"No discussion of 'traditional Chinese values' can be complete without mentioning the importance of education. The Chinese education ethic intersects with the country's recent embrace of capitalism in New Oriental Education, China's leading private education company.

"Founded in 1993, New Oriental is one of China's great entrepreneurial success stories, making its founder and chief executive Michael Yu a billionaire. The company operates a network of nearly 250 schools and learning centers in 38 cities across China.

"These schools teach English, foreign languages, test preparation and more. Think of it as a cross between Berlitz and Kaplan, but with a much bigger target audience.

"New Oriental sells for 43 times analyst forecasts for fiscal 2009 earnings. While that's not cheap, New Oriental has a dominant position in its market and a history of delivering growth. Earnings are expected to grow 50% next year.

"And thanks to the high priority that many Chinese place on education, New Oriental's services aren't as much of a 'discretionary' purchase as they might seem. Demand for most of New Oriental's courses should hold up well even if China's economy cools."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

English speaking gains in China originally appeared on BloggingStocks on Thu, 30 Oct 2008 14:00:00 EST. Please see our terms for use of feeds.

Prudent investment strategy might include a speculative foray into this popular and growing field. In light of this, you may wish to pay heed to blogger Steven Mallas, and read his take on Activision (NASDAQ: ATVI).

First on the list for brain maintenance is physical activity, which probably accounts for the outstanding sales of Nintendo's Wii Fit. from Nintendo Ltd. (OTC: NTDOY). Active lives promote healthy blood circulation, which helps to feed steady amounts of oxygen to the hungry brain. Good hard work, cardiovascular exercise and even regular sexual activity can all help to keep your heart pumping adequate levels of oxygen into your brain.

Continue reading Investing in brain health

Investing in brain health originally appeared on BloggingStocks on Tue, 24 Jun 2008 16:30:00 EST. Please see our terms for use of feeds.

"The Olympics have long been a boon to stock markets of host countries," notes Tony Sagami, a leading global stock advisor with a noted specialty in Asian markets.

In his Asia Stock Alert newsletter, he notes, "I believe the chief beneficiaries of the Olympic Games will be consumer and travel-related stocks. And within these sectors, I've chosen six stocks poised to bring home Olympic gold from Beijing."

"We saw a 19% gain in the Spanish stock market in the 12 months before the 1992 Barcelona Olympics, and the 27% gain in the Greek stock market in the year before the 2004 Athens Olympics. And those countries were not growing at a fraction of the breakneck pace that China is. So it wouldn't surprise me to see the Chinese stock market do even better.

Olympic Gold Winner #1: China Mobile (NYSE: CHL):

"It seems like every person I see in China has a cell phone glued to their ear. And the cell phone is not just the primary voice communication medium in China; it is also the common way most Chinese access the Internet and email. In China, the cell phone 'is' the personal computer.

"Heck, most new high-rise condominium and apartment complexes being built in China aren't even wired for land lines. Once you understand the device's role, you'll see why China Mobile has more cell phone users (360 million) than the U.S. has people. I expect a lot of cell phone calls and text messages during the Beijing Olympics!

Continue reading Six China stocks set to take home Olympic gold

Six China stocks set to take home Olympic gold originally appeared on BloggingStocks on Thu, 03 Apr 2008 08:50:00 EST. Please see our terms for use of feeds.

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Advanced Micro Devices Inc. (NYSE: AMD) had a lackluster quarter due in part to the acquistion of ATI.
• AMR Corp. (NYSE: AMR) posted a larger than expected loss due to rising fuel costs.
• Apple Inc. (NASDAQ: AAPL) shares are hunkered down post-MacWorld but ahead of the Q1 report.
• Genentech Inc. (NYSE: DNA) beat earnings estimates, though its growth is slowing.
• General Motors Corp. (NYSE: GM) forecasts earnings growth on cost-cutting and overseas sales.
• IBM (NYSE: IBM) had an impressive fourth quarter and expects a good 2008 (see transcript).
• Intel Corp.'s (NASDAQ: INTC) solid results failed to impress investors (see transcript).
• Johnson Controls Inc. (NYSE: JCI) posted a solid first quarter, with growth in all divisions.
• New Oriental Educational & Technology Group Inc. (NYSE: EDU) posted disappointing results.
• Novartis AG (NYSE: NVS) profits fell on restructuring costs and increased competition for generics.
• Sony Ericsson beat estimates and is gaining market share in the global cell phone market.
• TJX Companies Inc. (NYSE: TJX) revised its fourth quarter outlook after strong December sales.
• Vignette Corp. (NASDAQ: VIGN) raised its fourth quarter revenue guidance, which buoyed shares.
• Williams-Sonoma Inc. (NYSE: WSM) lowered its guidance on weak holiday sales.

See additional earnings highlights. Also, Jim Cramer ponders the ennui of the new earnings season. Georges Yared is bullish on tech stocks, and big tech executives are bullish as well. Jonathan Berr looks ahead to upcoming big tech reports.

Other upcoming results to watch for include Texas Instruments (NYSE: TXN), eBay Inc. (NASDAQ: EBAY), Motorola Inc. (NYSE: MOT), Qualcomm Inc. (NASDAQ: QCOM), Nokia Corp. (NYSE: NOK), AT&T Inc. (NYSE: T), E*Trade Corp. (NASDAQ: ETFN), and Microsoft Corp. (NASDAQ: MSFT).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Intel, IBM, GM, Apple, AMD, and others originally appeared on BloggingStocks on Sat, 19 Jan 2008 11:10:00 EST. Please see our terms for use of feeds.

The plunge in US markets is spreading beyond our shores -- and has even hit the Chinese stocks.

And one of the notable decliners is New Oriental Educational & Technology Group, Inc. (NYSE: EDU), which reported a disappointing fiscal Q2. The company is a leading English language provider.

Revenues came to $32.6 million, up 42.4%. Net income was up 77% to $2 million.

Good, huh? Unfortunately, it looks like fiscal Q3 may be tough. New Oriental sees revenue growth of 22% to 28%.

What are the issues? Well, there are likely to be disruptions from the upcoming Olympics (who wants to study then?)

Continue reading New Oriental Education: lost in translation

New Oriental Education: lost in translation originally appeared on BloggingStocks on Tue, 15 Jan 2008 18:21:00 EST. Please see our terms for use of feeds.

One of the most intriguing aspects of the private education market in China is its potential. Over the past twelve month, the country's leading provider of such services expanded the number of its schools by thirty percent.

New Oriental Education & Technology Group (NYSE: EDU) is the largest provider of private educational services in China. The firm offers foreign language training, test preparation courses, primary and secondary school education, development and distribution of educational content, and online education. It operates from 149 schools, mostly in eastern China. That's up from 115 schools a year ago.

Investors were pleased earlier in the week, when the firm reported fiscal Q1 EPS of 91 cents and revenues of $81.1 million. The Street had been looking for 79 cents and $72.8 million. Management also guided Q2 revenues to $28.0-$29.8 million, versus Street consensus of $28.63 million. Brean Murray and CIBC World Markets subsequently reiterated "buy" ratings on the issue. The stock popped on the news and then passed into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers recommend the shares with three "buys" and two "holds". Analysts expect a forty percent growth rate, through the next year. The EDU Sales Growth rate (42.53%), EPS Growth rate (24.66%), Operating Margin (24.15%), Net Profit Margin (24.79%) and Return on Assets (16.82%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 44 percent of the outstanding shares. Over the past 52 weeks, the stock has traded between $23.10 and $77.00. A stop-loss of $65.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

New Oriental Education & Technology Group (EDU): Defining the growth of Chinese private education originally appeared on BloggingStocks on Fri, 19 Oct 2007 12:43:00 EST. Please see our terms for use of feeds.

With the dollar hitting record lows every day, how can you make money in stocks? The short answer is to invest in growing companies based outside the U.S.

This strategy has propelled my investment newsletter to outperform the S&P 500 in the first nine months of 2007. Specifically, stocks highlighted in The Cohan Letter -- I highlight three stocks per month -- are up an average of 17%, compared to a 7% rise in the S&P 500 since the beginning of the year. Which three picks have done the best?·

• Posco (NYSE: PKX) rose 48% from $92.70 to $178.77. Barry Summerlin highlighted this Korean steel company, which I suggested might do well in an August post -- it's up 46% since then;
• CVRD (NYSE: RIO) -- the Latin American telecommunications mining company -- rose 45% from $18.50 to $33.85; and
• New Oriental Education and Technology Group (NYSE: EDU) -- a Chinese educational testing company -- rose 34% from $43.75 to $65.66.

I don't know whether these particular stocks have peaked, but if the dollar keeps dropping, they could continue to do well.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Making money in a weak dollar market originally appeared on BloggingStocks on Sun, 30 Sep 2007 12:30:00 EST. Please see our terms for use of feeds.

Education is certainly a big deal in China. In fact, one of the hottest IPOs over the past few years has been the New Oriental Education & Technology Group (NYSE: EDU), which provides English instruction in China.

Well, US investors will have another chance for another education play from China: Noah Education Holdings. This week, the company filed for a public offering.

Basically, the company is a provider of interactive education content for a variety of subjects like English, math, history, physics and so on (there are more than 28,000 titles).

Interestingly enough, the primary delivery platform for the content is from handheld digital learning devices (DLDs). The systems have also proven useful for e-dictionaries.

And the financial looks good. As of last year, Noah's revenues were $72.9 million and net income came to $8.7 million.

The lead underwriter is Deutsche Bank Securities and the proposed ticker is "NED."

You can find the IPO prospectus at the SEC's website. Also, if you want to check out other IPOs, click here.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

Noah Education: another hot IPO from China? originally appeared on BloggingStocks on Mon, 24 Sep 2007 18:00:00 EST. Please see our terms for use of feeds.

New Oriental, he notes, recently reported quarterly results showing a 4 cent per share loss for the quarter. He notes, that while this was a 65% improvement over the same period last year, it was 1 cent profit Wall Street was expecting.

The reason for the shortfall, he observes, was that increased marketing and advertising expenses. Thus, he notes, "While all that extra spending hurt profits last quarter, it should pay off in spades down the road." In fact, he adds,
That's why revenues jumped by 29% to $24.9 million, slightly ahead of the consensus estimate of $24 million."

Meanwhile, he notes that total student enrollments in language training and test preparation courses for the quarter ending May 31 increased by 31.5% year-over-year to approximately 314,000.

Continue reading New Oriental (EDU): Asia expert's 'best stock in the world'

New Oriental (EDU): Asia expert's 'best stock in the world' originally appeared on BloggingStocks on Fri, 17 Aug 2007 11:43:00 EST. Please see our terms for use of feeds.

With the growing interest in investing in China, an increasing number of advisers are spending more of their time in the region, meeting with managements and getting first-hand experience about Chinese companies.

One such adviser is Tony Sagami, editor of The Asia Stock Alert. Back from his latest visit to the region, he has added New Oriental Education (NYSE:EDU) to his portfolio.

The company helps Chinese learn English and other languages. Sagami asks, "How much do I like New Oriental? If there was only one stock that you could own, this is the one."

And while the company has just gone through what is supposed to be its slowest time of year, the adviser notes, "Somebody forgot to tell the people running EDU that business should slow down, because it is still booming."

Continue reading English lessons boost China's New Oriental

English lessons boost China's New Oriental originally appeared on BloggingStocks on Wed, 21 Mar 2007 15:45:00 EST. Please see our terms for use of feeds.

New Oriental Education & Tech. Group.: It pays to get a competitive edge originally appeared on BloggingStocks on Mon, 19 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.