Long Position on EDU @ $56.00 on 9/20/2023 (Momentum)

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

The company operates through Educational Services and Test Preparation Courses; Online Education and Other Services; Overseas Study Consulting Services; and Others segments.

It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the Commonwealth countries, and the People's Republic of China. The company also provides non-academic tutoring courses; intelligent learning systems and devices to offer a digital learning experience for students; and overseas studies consulting services.

In addition, it offers online education services through the Koolearn.com platform that provides comprehensive online education courses, including college educational services, such as college test preparation, overseas test preparation, and English language learning for college students and working professionals preparing for standardized tests or seeking to enhance their English language proficiency; and educational content packages to schools and institutional customers, including universities, public libraries, telecom operators, and online video streaming providers. 

On July 26th, EDU reported earnings of $0.22 per share on revenue of $860.57 million for the fiscal fourth quarter ended May 2023. The consensus earnings estimate was $1.12 per share on revenue of $818.49 million. 

The company said it expects first quarter revenue of $983.20 million to $1.006 billion. The previous consensus revenue estimate was $956.62 million for the quarter ending August 31, 2023. Shares are heading higher along a trendline as shown. 

Entry Point: $56.00

Stop Loss: $53.00

Trading Range: $17.01 to $60.19

Target Price: $61.60

Position closed on 9/29/2023 at price of $61.15 with a 9.20% gain in 9 days.

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