AOL Money & Finance

TycoonReport posts

Feed

New Oriental (EDU): Educated gains in China

"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

Top Picks 2007: Jovine sees turnaround at Radio Shack

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Radio Shack Corp. (NYSE: RSH) is the top speculative idea for 2007 from Dylan Jovine. The editor of The Tycoon Report notes, "The sale of the season is being offered by an emotionally unstable 'Mr. Market,' who, at the moment, happens to be very depressed on the retail sector in general and Radio Shack in particular.

"Meanwhile, I believe quality management is particularly important to the future prospects of any value investment. It's not the only thing I look at by any means, but with Radio Shack, it's what has me so excited.

"On July 7th of 2006, Radio Shack's board elected Julian Day to become Chairman and CEO of the company. This is the same man who took over at K-Mart and led them out of bankruptcy, increasing the company's value from $1.5 billion to $9 billion.

"The easiest and fastest thing Day will do is to focus on increasing operating margins. I would bet a lot of money -- based on Day's track record -- that he'll turn this ship around inside of the next 18 to 24 months. When Day is done doing his job, the chances are high that Radio Shack's margins will look similar to how they looked in 2000.

Continue reading Top Picks 2007: Jovine sees turnaround at Radio Shack

Top Picks 2007: Dylan Jovine sleeps well at Hilton

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Hilton Hotels Corp. (NYSE: HLT) is the favorite conservative play from Dylan Jovine, editor of The Tycoon Report. He explains, "During the past two years, while Paris Hilton has been getting all the press, it's been the Hilton Corporation that's truly been doing great things.

"If HLT reaches $35 per share, sit tight and wait for a pullback. Meanwhile, here are the top reasons Hilton is worth owning:

  • Hilton wasn't doing anything for a long time but just managing its assets. Last year they decided to buy back their international arm. They got their house in order and are now expanding. From 2001 to present, profit margins have been steadily increasing.
  • I've always loved the hotel business: You build something -- which means that your heavy costs are incurred up front -- and then, if you know how to market it, people come. Most risk is in development.
  • During the past few years, Hilton increased capacity at their hotels by lowering costs and tightening operations. This is evidenced by the fact that sales have increased 8% from 2005 while operating income increased by 22% over 2004. Net income was up 93%!
  • Transformative year in 2005: Acquired Hilton Lodgings PLC and became largest hotel company in the world with 2,800 properties and 475,000 rooms.
  • Demand is very strong -- Hilton managed to raise prices above the inflation rate: That means pricing power.
  • When Hilton bought the London Hotel, they decided to do an all-cash transaction, which meant they had to issue debt. The reason? They would rather take on debt then issue equity, realizing the upside.
  • Increased operating margins: When you increase revenue but lower costs, you increase profitability. They've been doing that to perfection."

To see Dylan's favorite speculative stock pick for 2007, click here.

Symbol Lookup
IndexesChangePrice
DJIA+203.5210,226.94
NASDAQ+41.622,154.06
S&P 500+23.781,093.08

Last updated: November 10, 2009: 09:11 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

WalletPop Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance