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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (38812)	8/13/2010 9:33:07 AM
From: gcrispin	Respond to of 78744

Yes, the stock is cheap. Also, receivables are almost non-existent. That's very unusual for a Chinese company, but typical in the Ed. business in China. First quarter showed no growth, but in the latest quarter total revenue grew 33% and net income grew 29.9%. Company is still predicting 30% increase in revenue growth for 2010, so things will have to accelerate in the second half. It's the dilution that makes the comps look bad. In the meantime, CEU is generating a tremendous amount of free cash flow. Hard not to like that.