Long Position on GSX @ $42.00 on 3/27/2020 (Momentum)

GSX Techedu Inc., (GSX), a technology-driven education company, 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. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019.

The online education platform should continue to benefit from the online and stay at home education trend as a result of COVID-19.

Entry point: $42.00

52-week trade range: $8.53 - $46.40

Stop/Loss: $40.00

Target price: $46.70

Updates

4/14/2020 1:53:03 PM

GSX closed at $31

Position closed on 4/14/2020 at price of $31.00 with a -26.19% loss in 18 days.

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