Long Position on GSX @ $14.00 on 10/23/2019 (Momentum)

GSX Techedu Inc. (GSX) provides online K-12 large-class after-school tutoring services in the People's Republic of China.

It offers K-12 large-class after-school tutoring courses that cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science.

The company also provides English courses for children in kindergarten; and courses that help children in grade one through grade seven.

In addition, it offers foreign language courses comprising English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher's qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. Further, the company provides personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy.

Additionally, it offers other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. 

Shares of this recent IPO have formed a bullish "cup and handle" and are expected to move higher.The 50-day moving average supports the formation. On August 22nd, the company reported its first results as a public company. Gsx Techedu Inc ADR (GSX) reported Quarter June 2019 earnings of $0.01 per share on revenue of $51.5 million. Higher share prices are expected.

Entry Point: $14.00

Stop Loss: $13.25

Trading Range: $8.53 to $17.53

Target Price: $15.40

Updates

10/30/2019 10:54:23 AM

GSX closed at $16.45

Position closed on 10/30/2019 at price of $16.45 with a 17.50% gain in 7 days.

Back to Portfolio