Today I'd like to talk about unusual asset, this is TAL stock that has been in my radar since 2021. I think everyone knows what happened in that moment, right? The China government banned a private education, as a result, TAL stocks that were one of the main leaders in the education sector fell by $90, from $91 to $1 level, most investors lost their money because of such unexpected changes in this industry. Of course, I was surprised to see such news and decided to dig out more about it to find out what exactly is going on there. I did a deep research about this situation and found out that the same situation happened with South Korea in XX century. The government wanted to eliminate inequality, but eventually these changes lead to a deeper gap between rich and poor people in society. A private education was illegal, hence, wealthy families were ready to pay more money for education in order to bribe private tutors to work in illegal conditions. That's what the chinese goverment is trying to do these days also. Why this stock might be a jackpot, even though risks are quite high? It turned out that the South Korea government realized their mistake and they unbanned private education in their country which increased the quality of lessons and made education more accessible to different segment of society. Of course, It took 10 years to put everything back in its place, and I think the same situation can happen with Chinese educational industry. Just take a look at where South Korea is nowadays, they're number #1 in private education around the world. Additionally, taking into consideration fundamental data, we can say that TAL adjusted to new rules pretty quickly and they changed their business model to adhere new education rules which tells us something about their effectiveness and flexibility. Yeah, they're not making big profits as 5 years ago, but they still stay consistent in this bizz, and since China imposed limits on education, their stock managed to grow from $1.60 to $14... You can also reach out to their top management by asking questions via international phone or gmail, visiting yahoofinance website. I also emphasized two global levels since 2024, these are $8-9 and $15-16 support and resistance zones. You can clearly see how the price is moving from these global ranges, and I think it's also can be used as a mid-term investment idea, not for only long-term goals. I won't be surprised to see how the price will breakout the resistance zone and reach $40-$50 in near few years, their stock is too undervalued. I'd definitely allocate some money for this long-term idea, who knows, maybe you'll make x10 profit minimum, but you have to understand that investing in the stock market involves high risks. The best opportunity to get a whole sense about their performance is to check reviews and comments from others China traders on Baidu.com, you can find real opinions about what they exactly think about the company's business model. That's how I made my final decision on buying a bunch of TAL stocks to hold them for as long as possible until I see how the price break out the $20 global resistance zone. So far, trading or investing mid-term TAL stocks can be a good option for making money in a short period of time.
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Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.