5-Star Stocks Poised to Pop: China Education

By Brian D. Pacampara | More Articles
September 17, 2009 | Comments (5)

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese education provider China Education Alliance (NYSE: CEU ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at China Education's business and see what CAPS investors are saying about the stock right now.

China Education facts

Headquarters (Founded)	Harbin, China (2004)
Market Cap	$134.5 million
Industry	Education services
Trailing-12-Month Revenue	$32.6 million
Management	CEO Xiqun Yu CFO Zibing Pan
Compound Annual Revenue and Net Income Growth (Over Past 3 Years)	73.4% and 53.5%
Cash / Debt	$31.5 million / $0
Competitors	Apollo Group (Nasdaq: APOL ) Strayer Education (Nasdaq: STRA ) DeVry (NYSE: DV )
CAPS Members Bullish on CEU Also Bullish on	American Oriental Bioengineering (NYSE: AOB ) GigaMedia (Nasdaq: GIGM ) Vale (NYSE: VALE )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, all of the 80 members who have rated China Education believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars jamespeer and WPThatcher.

Just last week, jamespeer tapped the stock as an exciting way to get educated: "Leaders in their industry in China, we have seen demand for these type of services grow over the years in the UK and US and I expect the same to happen in China and other emerging markets over the next 5years or so. This company has an established reputation in the industry so I expect them to benefit."

In a pitch from last month, WPThatcher schools Fools even further:

China Education Alliance operates in a market that is growing by about 20% a year. They make test materials and study guides, while also providing vocational and certification training. Right now, it has a P/E of 10.7 and an annual EPS growth rate of 54%. That's an astounding PEG ratio of 0.20! Insiders own over half the stock. It has no long-term debt.

What do you think about China Education, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. GigaMedia is a Motley Fool Rule Breakers recommendation. American Oriental is a choice of Motley Fool Hidden Gems and Global Gains, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (5) | Recommend This Article (20)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On September 17, 2009, at 2:21 PM, redchip1 wrote:

CEU has very high ceiling, only beginning to tap the value. Compared to peers this is highly undervalued, strong opp for 100-200% gain over next 6 months. Time to build positions is now.
Report this Comment On September 18, 2009, at 10:18 AM, redchip1 wrote:

Another China look LLFH (Coal) all about acquisition strategy in the China coal industry. Working capital 26M, Rev up 53%, Earnings up 32% STRONG liquidity. Time to build positions.
Report this Comment On September 21, 2009, at 1:34 PM, farrockgrad wrote:

I am very high on CEU as well. However, I see the competition as different from the profile shown. To me, the main competitor is the other major Chinese on-line education company--EDU.
the difference is that EDU tends to concentrate in big cities while CEU focuses on the rural area, smaller cities. With China trying to upgrade circumstances for those in these lesser area, I believe it represents a great opportunity for CEU.
Report this Comment On September 21, 2009, at 3:32 PM, redchip1 wrote:

CEU has 5 northern provinces locked up, those provinces do represent a strong growth opportunity. This is a 15B marketplace and yes EDU is the major player, yet CEU is carving a very strong niche and will continue to grwo quite rapidly, plenty of cash to sustain high levels of growth.
Report this Comment On October 08, 2009, at 2:54 AM, piggybank819 wrote:

Why do you mention this stock that I own. You mentioned CGA and FEED months ago and both of them stopped going higher. I don't like either Cramer or your guys to mention stocks that I own, it means bad luck. Geeee.

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 986610, ~/Articles/ArticleHandler.aspx, 5/27/2012 5:49:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes