Hartcourt Companies (fka HRCT)

[EZ2]

"excerpt"

New Oriental Education & Technology Group

(EDU - Cramer's Take - Stockpickr) provides private educational services based on the number of program offerings, total student enrollments and geographic presence in the People's Republic of China. EDU has been initiated at hold.

Since the same quarter one year prior, revenues leaped by 53%. EDU has no debt to speak of resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. The gross profit margin for EDU is rather high; currently it is at 56%. Despite the strong results of the gross profit margin, EDU's net profit margin of 4% significantly trails the industry average. Powered by its strong earnings growth of 267% and other important driving factors, this stock has surged by 36% over the past year, outperforming the rise in the S&P 500 Index during the same period.

Setting our sights on the months ahead, however, we believe that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. EDU has not previously been rated.