EDU - New Oriental Education and Technology Group

EDU is Up 22% today and rising during the market death spiral -

Thinking about puts for it - If the Chinese Gov starts speaking about for-profit education again or delisting talks come back into play.

Curious about others’ thoughts - who might have more insights.

Montey Fool says, " What happened

One of the rare stocks that defied gravity during Monday’s market meltdown was New Oriental Education & Technology Group (EDU 23.45%). The Chinese educational services provider’s shares popped by nearly 6% on the day thanks to a bullish new analyst note, while the S&P 500 index suffered a queasy decline of almost 4%.

So what

Said bullish note came from JPMorgan Chase’s near-eponymous J.P. Morgan investment bank. Analyst DS Kim upgraded his recommendation on the stock from neutral to overweight (equivalent to buy). Kim also boosted his price target on New Oriental to $24 per share, from a previous target of $14 per share.

The analyst’s theory is that while there remain uncertainties regarding the Chinese government’s stance on the for-profit education industry, New Oriental’s stock has been battered to the point where it’s a compelling buy. Several fundamentals and valuations support this – one cited by Kim is the company’s net cash position, which at $4.3 billion is actually well higher than its current market capitalization.

Describing the shares’ present level as “punitive” for its recent troubles, Kim wrote that “Investors are literally being paid to wait until it completes restructuring (likely in 2-3 quarters) and establishes its path to scale and profitability (probably in a year or two).”"