Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Tarena International Inc. (NASDAQ:TEDU) rose 15% Monday, after the Chinese professional education services specialist announced a cooperative agreement with Bank of China Consumer Finance Co.
So what: Under the agreement, BOCCFC will offer loans to Tarena students to help them finance tuition fees. BOCCFC joins the ranks of CreditEase and Bank of Beijing Consumer Finance Company, both of which already have similar deals in place with Tarena.
Now what: Tarena founding Chairman and CEO Shaoyun Han added: "The participation of BOCCFC further diversified payment options and increased financing flexibility for our students. We look forward to a long term cooperation with BOCCFC."
The deal is obviously encouraging for Tarena shareholders, who had gone into today's session having watched the stock drift downward more than 25% since its IPO at $9.00 per share earlier this month. Even so, before I'm willing to take the dive as a long-term investor, I still prefer waiting until the dust settles and Tarena has at least a couple of quarters under its belt as a publicly traded company.