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Tiger Global Sheds Shares of China Stock, TAL Education
Posted by: Dianne Tordillo (IP Logged)
Date: December 6, 2012 05:00PM
As of Nov. 30, Tiger Global Management, founded by Chase Coleman, has reported to decreasing 5.9 percent of the hedge fund's stake in Chinese academic tutoring services provider, TAL Education Group (XRS), according to GuruFocus Real Time Picks.
This places Tiger Global's current holding at 20,900,000 shares.
The hedge fund, which is co-managed by Coleman and Feroz Dewan, first purchased TAL Education in the last quarter of 2010 in connection with the company’s initial public offering. By the first quarter of 2011, the fund reported owning 800,000 shares of TAL Education, purchased at $10.00 per American Depository Share, or the aggregate amount of $8 million, reported in Tiger Global’s latest 13D filing to the SEC.
With a market cap of $697.3 million, TAL Education is a company that offers K-12 comprehensive tutoring services through three class formats: small classes, personalized premium services and online courses. Its core curricula include subject coverage in math, English, Chinese, physics, chemistry and biology. It reports a 70 percent annual retention rate (en.xueersi.org) and has grown its network to 257 learning centers in 10 of China’s major cities.
Today, TAL Education’s stock is up almost 2 percent, trading at $8.58 per share. It is trading close to its 52-week low of $6.97.
In October, it announced its second fiscal quarter results. The company presented a 32.3 percent year-over-year increase in net revenue, a 65.1 percent increase in income from operations, and a 24.8 percent increase in total student enrollments for its tutoring services.
For the first six months of TAL Education’s fiscal year, the company reported similar positive results, particularly in net revenues, net income, non-GAAP net income and total student enrollments, despite the closing of several of its centers recently. It reported to having 270 learning centers in February; it now has 257.
TAL’s revenue has had a positive growth rate of 37.5 percent in the past 12 months. Ever since its IPO in 2010. (10-Year Financials)
TAL’s stock price has plunged about 40 percent, when it initially traded around $18. Year-to-date, TAL’s stock has gone down by 9.73 percent.
XRS data by GuruFocus.com
TAL Education represents about 1.3 percent (as of Sept. 30) of Coleman’s portfolio, and 14.88 percent of shares outstanding.
Technology remains the majority-represented sector in Tiger’s 43-stock portfolio, with consumer services and financials trailing behind it.
Currently, his top holdings are Apple Inc. (AAPL), Yandex NV (YNDX), Google Inc. (GOOG), Priceline.com (PCLN) and Yahoo! Inc. (YHOO)
View the rest of the fund's latest stock picks here.
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Guru Discussed: Chase Coleman: Current Portfolio, Stock Picks
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