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What: Shares of TAL Education Group
So what: Investors have had a day to digest TAL Education Group's quarterly results, and a second look appears to have reinvigorated bulls. The after-school tutoring company reported sharply higher revenues on substantially higher student enrollment, and traders seem willing to click the buy button.
Now what: It's tough to say where TAL Education Group goes from here because it's such a recent IPO. It has been nothing less than volatile over the past week, and today's action could be nothing more than a bounce after losing roughly 20% of its value over the prior two trading sessions. The company is also dealing with some tough comparisons. It's a Chinese-based equity, and needless to say, faith in financials from Chinese equities is very low. It's also dealing with overall sector weakness, as U.S. education companies remain under pressure as Congress weighs funding options for these companies. The company does have an impressive growth rate, but for now I'm much happier simply adding it to my watchlist.
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Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.