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Coleman’s Tiger Global Ups Stake in Chinese Education Company

September 24, 2013 | About:
Monica Wolfe

Monica Wolfe

127 followers
As reported to GuruFocus real time picks, Chase Coleman’s Tiger Global Management Fund significantly upped its position in TAL Education Group (XRS) on Sept. 18. Tiger Global’s new buy gives the fund a near 15% stake in the company.

Tiger Global increased their stake in the company 51.68% by purchasing a total of 3,850,000 shares. The fund bought these shares at an average price of $13.01 per share. The price has since then grown approximately 8% to $13.98 per share. Since its most recent buy Tiger Global now holds on to 14.48% of the company’s shares outstanding.

Chase Coleman and Tiger Global’s historical holding history:

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TAL (Tomorrow Advancing Life) Education Group is a K-12 after-school tutoring service provider in China. It delivers its tutoring services through small classes, personalized premium services and online course offerings.

TAL Education’s historical revenue and net income:

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The company recently announced the results of its 2013 Annual General Meeting which announced that its shareholders adopted resolutions to amend its 2010 Share Incentive Plan. The provision to the plan is that “the maximum aggregate number of shares which may be issued pursuant to all Awards shall equal 5% of the total issued and outstanding shares as of the date when the shareholders approve this provision.”

The company’s first fiscal quarter reported:

· Net revenues increased 24.5% year-over-year to US$61.4 million.

· Income from operations increased 10.8% to $6.7 million.

· Net income attributable to TAL increased by 62.7% year-over-year to US$8.1 million.

· Cash and cash equivalents equaled US$271.1 million.

· Total student enrollments increased by 17.1% year-over-year.

The analysis on TAL Education reports that the company holds no debt, its revenue has been in decline over the past three years and its price is nearing a two-year high.

Several stock analysts have recently upped TAL Education to “outperform.”

TAL Education has a market cap of $1.1 billion. Its shares are currently trading up 0.72% at around $14.08 with a P/E ratio of 33.60, a P/S ratio of 4.90 and a P/B ratio of 5.70. The company also currently holds a dividend yield of 4.90%.

Chase Coleman is the largest guru shareholder of TAL Education, but Jim Simons and Robert Karr also hold sizable positions in the Chinese education company.

To learn more about TAL Education check out their GuruFocus summary page. Also check out Chase Coleman’s second quarter portfolio here.

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Rating: 4.0/5 (2 votes)

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