Skip Navigation Links
Plunge in edtech stocks in China
13 Sep 2021 (655 views)

The education technology stocks in China plunged due to control measures that were recently announced by the China government. 

Read this article

Here are the financials for 4 edtech stocks. The prices had dropped beween 83% to 98% from their peak prices during the past 52 weeks.

I saw this video from Pascal Coppens, who knows China well. He has been in China for a few decades. He explained the reason for the restrictions imposed by the government. He said that this sharp drop provide an opportunity for investors. The edtech companies have the opportunity to move into a new field, such as adult education.

I agree with the optimistic view presented by Coppens.

Gaotu Educataion (GOTU)
I find Gaotu Education (GOTU) to be interesting. It has a cash per share of $20.98 (USD) compared to the current price of $2.64.  I wonder if there is a mistake, so I shall be studying the figures more closely.

However, it has a high debt to equity ratio of 129%. So, it may face problem in paying off its debt.

New Oriental Education (EDUC)
This stock has a price earning ratio of 8.75X and a cash ps of $3.60 which is higher than the current price of $2.10. Its debt to equity ratio of 40%.

It has dropped 89% from its peak. I will monitor this stock more closely.

Caution - I am giving my personal view. I am not recommending any purchase or sale of any stock at any specific price. Do your own diligence before you make any investment.

Tan Kin Lian

 


Plunge in edtech stocks in China
[Back] [Print]


The education technology stocks in China plunged due to control measures that were recently announced by the China government. 

Read this article

Here are the financials for 4 edtech stocks. The prices had dropped beween 83% to 98% from their peak prices during the past 52 weeks.

I saw this video from Pascal Coppens, who knows China well. He has been in China for a few decades. He explained the reason for the restrictions imposed by the government. He said that this sharp drop provide an opportunity for investors. The edtech companies have the opportunity to move into a new field, such as adult education.

I agree with the optimistic view presented by Coppens.

Gaotu Educataion (GOTU)
I find Gaotu Education (GOTU) to be interesting. It has a cash per share of $20.98 (USD) compared to the current price of $2.64.  I wonder if there is a mistake, so I shall be studying the figures more closely.

However, it has a high debt to equity ratio of 129%. So, it may face problem in paying off its debt.

New Oriental Education (EDUC)
This stock has a price earning ratio of 8.75X and a cash ps of $3.60 which is higher than the current price of $2.10. Its debt to equity ratio of 40%.

It has dropped 89% from its peak. I will monitor this stock more closely.

Caution - I am giving my personal view. I am not recommending any purchase or sale of any stock at any specific price. Do your own diligence before you make any investment.

Tan Kin Lian