Replies to post #61031 on China Growth Stocks

[derek2000]

CEU - While I am concerned with the training facility, the math in your post needed to be re-calibrated though.

Remember that CEU is for supplementary education training, not regular schools. The students do not stay in the school the whole day, they just stay long enough for the training classes.

Capacity for 1200 students means they have 1200 seats to host students at any given time.

Each seats can be used the many different students at any given time.

In US, you can pay as much as $2000 for a 3 or 5 day training class. So it is not unusual for a Chinese training facility to generate $10K/year per seat. Those seats can be utilized at 7x12 basis (seven days a week, 12 hours each day.)

For example, if they hold 5 training sessions (3 by day, 2 at evenings) each day, that's up to 5x1200 students.

If you schedule the training sessions per MWF and TThu, then Sat/Sun, and you multiply the student population by another 5 or even 10.

Provided that they indeed have those students.

[derek2000]

CEU - While I am concerned with the training facility, the math in your post needed to be re-calibrated though.

Remember that CEU is for supplementary education training, not regular schools. The students do not stay in the school the whole day, they just stay long enough for the training classes.

Capacity for 1200 students means they have 1200 seats to host students at any given time.

Each seat can be used by different students at any given time.

In US, you can pay as much as $2000 for a 3 or 5 day training class. So it is not unusual for a Chinese training facility to generate $10K/year per seat. Those seats can be utilized at 7x12 basis (seven days a week, 12 hours each day.)

For example, if they hold 5 training sessions (3 by day, 2 at evenings) each day, that's up to 5x1200 students.

If you schedule the training sessions per MWF and TThu, then Sat/Sun, and you multiply the student population by another 5 or even 10.

Provided that they indeed have those students.

[researcher59]

CEU - I think the company will come up with a range of excuses in next week's conf call. Probably it would be easiest for them to acknowledge errors in their 10K descriptions .... and say that the "training center" is being refurbished and is not currently in use and represents only a small part of their revenue stream. Their past earnings conf calls have already contradicted the 10K in this regard anyway.

Whatever excuses they come up with, they will have lost a lot of credibility. It will be interesting to hear what they have to say and how investors react.