Tuesday, August 4, 2009

Cashing in on online learning in China

China Education Alliance (CEU)is an online education and onsite training company based in the People's Republic of China. This is a market that is growing by about 20% a year. They make test materials and study guides, while also providing vocational and certification training. Right now, it has a P/E of 10.7 and an annual EPS growth rate of 54%. That's an astounding PEG ratio of 0.20! Insiders own over half the stock. It has no long-term debt.

Let me mention a few caveats. It is a microcap stock that trades on average 13K shares per day. It has a beta of 2.17. Please build a position in this stock slowly and use limit orders.

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