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Chase Coleman's Tiger Global Cuts TAL Education

October 03, 2013 | About:
Monica Wolfe

Monica Wolfe

119 followers
Over the past week guru Chase Coleman’s fund, Tiger Global Management, made an interesting reduction of its stake in the Chinese education company TAL Education Group (XRS).

Coleman, along with Feroz Dewan, are the portfolio managers of the team at Tiger Global, and over the past week and a half the Tiger team has made two notable transactions as reported by GuruFocus Real Time Picks. These transactions come as TAL Education is inching nearer to its record high in share price.

Tiger Global made its first trade in TAL Education on Sept. 18 when they upped their stake in the company by 51.68%. The fund purchased a total of 3,850,000 shares at an average price of $13.01 per share. Since this buy the price per share is up about 13%.

More recently, Tiger Global cut its stake back -10.62% by selling a total of 1.200,000 shares of their newly purchased stock. These shares traded at an average price of $14.88, up almost 20% from their original buying price. This raked in about $17.85 million for the fund. The price is now trading down about -1%.

As of Tiger Global’s most recent transaction the fund holds on to 12.94% 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 Group has a market cap of $1.15 billion. Its shares are currently trading at around $14.72 with a P/E ratio of 35.10, a P/S ratio of 5.10 and a P/B ratio of 6.00. The company’s dividend yield of TAL Education stocks is 3.30%.

Check out Chase Coleman’s Stock Picks here.

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Rating: 3.0/5 (2 votes)

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