Hedgeye CEO Keith McCullough is adding New Oriental Education (EDU) to the short side of Investing Ideas. Below is a brief note.
Looking for some green (on #decelerating volume) to sell into (and hedge your Long China asset allocations)?
New Oriental Education (EDU) remains a Best Idea Short (Institutional Research product) by Felix Wang.
Here's a summary excerpt from Felix's Institutional Research note this week:
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Same old story for EDU. Revenue estimates remain too high, and sell-side will need to start cutting given poor FQ1 2021 guidance. Management used the term "most conservative" in the text for FQ1 guidance; yet, even if results come in slightly above the US$911.2m-$953.5m range, it is still substantially below ours and Bloomberg estimate (US$1.15bn). It's not just overseas dragging EDU (overseas test prep expected to fall 60% next quarter!)... |
Sell the bounce to lower-highs,
KM
