Long Position on EDU @ $40.00 on 12/23/2022 (Momentum)

New Oriental Education & Technology Group Inc. (EDU) provides private educational services under the New Oriental brand in the Peoples Republic of China. 

It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle school and high school students to help students achieve better scores on entrance exams for admission into high schools or higher education institutions.

The company also provides language training courses consisting of English and other foreign languages, such as German, Japanese, French, Korean and Spanish; operates full-time private primary and secondary boarding school in Yangzhou seeking a full curriculum taught in Chinese and English; develops and edits educational materials for language training and test preparation comprising books, software, CD-ROMs, magazines, and other periodicals; and offers online education programs on its Websites koolearn.com and koo.cn.

In addition, it offers overseas studies consulting; pre-school education; and a pilot program that permits third parties in small cities to provide its English and kindergarten programs under a brand name cooperation model.

Shares have formed a bullish "cup and handle" following the company's latest quarterly report.  Higher share prices are expected for this stock.  On October 26th, EDU reported 1st Quarter August 2022 earnings of $0.38 per share on revenue of $744.8 million. 

Guided Higher: The company said it expects second quarter revenue of $601.40 million to $619.20 million. The previous consensus revenue estimate was $519.99 million for the quarter ending November 30, 2022.

Entry Point: $40.00

52-Weeks Trading Range: $8.40 to $42.19

Stop Loss: $38.00

Target Price: $44.00

Position closed on 12/29/2022 at price of $38.00 with a -5.00% loss in 6 days.

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