$5.61 + $.26 $4 /share cash $.60 forward EPS $14 IPO price
NED:NYSE ($5.61 +$.26 ) is the buy of the year IMO.
-NED is in a recession proof growth sector, China education. Another China education company, EDU, TRADES AT A 60 PE AND A $2.7 BILLION MARKET CAP.
-$4 per share cash with no debt.
-9 MM float
-NED IPO price was $14 and rose to $23.
-Reported $.21 EPS in most recent quarter.
-In May 15 PR NED guided for EPS over $.50 in this fiscal year.
-NED is in a recession proof growth sector, China education.
-NED should easily earn $.60 in the next fiscal year.
Applying a conservative 20 forward PE gives NED fair value as
$.60 X 25 + $4 = $19 per share (another China education stock EDU, trades at PE of 60).
