Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Investing in Chinese Recession Proof Stocks

Companies / China Stocks Nov 25, 2008 - 01:32 PM GMT

By: Money_and_Markets

Companies Best Financial Markets Analysis ArticleOur country has been losing millions of jobs to cheaper foreign competitors and losing our edge in many industries — electronics, automobiles, semiconductors, clothing to name a few — but one thing we have that every country in the world wishes they had is our collection of spectacular universities.


Sure, there are lots of foreign universities with fantastic reputations — Oxford, Tokyo University, the Hebrew University of Jerusalem, the University of Paris, and McGill University. But foreign students have been enrolling in U.S. colleges in staggering amounts.

The U.S.A. Is a Mecca of Higher Education

According to the new Open Doors 2008 report from the Institute on International Education, a total of 623,805 students from around the world (61% from Asia) attended a U.S. college in the 2006-07 academic year. Overall, new international student enrollments increased by 10%, following an increases of 10% and 8% the previous two years.

Hundreds of thousands of students from around the world attend a U.S. college or university each year.
Hundreds of thousands of students from around the world attend a U.S. college or university each year.

Each of the three largest sending countries experienced double-digit increases: South Korea up 11%, India up 13%, and China up 20%.

Most of those foreign students headed to (in order) California, New York, Texas, Massachusetts, and Illinois. The most popular colleges are University of Southern California, New York University, Columbia University, University of Illinois, and Purdue University.

In case you're curious, engineering and business are the most popular fields of study for foreign students.

By the way, the flow of international students goes both ways, The Institute on International Education (IIE) showed that a record number of American students are studying abroad, too.

In the 2006-07 academic year (the most recent figures available), a total of 241,791 Americans enrolled in foreign colleges. That is an 8% increase from the previous year but a 150% in the latest decade.

The biggest increases were in the numbers going to Argentina, South Africa, Ecuador, India and China. The number of Americans enrolled in Chinese colleges increased by 25% last year.

11,064 American were enrolled in Chinese colleges in the 2006-07 academic year (most recent figures). To put that in perspective, 1,396 Americans studied in China in 1995-96.

“Interest in China is growing dramatically, and I think we'll see even sharper increases in next year's report,” said Allan Goodman, President of the IIE. “People used to go to China to study the history and language, and many still do, but with China looming so large in all our futures, there's been a real shift, and more students go for an understanding of what's happening economically and politically.”

Those foreign students can't just show up at a U.S. college. They must first pass the Test of English as a Foreign Language (or TOEFL, pronounced “toe-full”) first. The TOEFL test evaluates the potential success of an individual to use and understand Standard English at a college level and is required for non-native applicants at English-speaking universities in the U.S., Canada, Australia, and the U.K.

All those additional foreign students mean more profits for New Oriental Education, the largest English-instruction school in China, which also happens to hold a government-authorized monopoly to administer the TOEFL.

That is a big part of the reason why New Oriental Education just delivered another great quarter. Even the glued-to-the-TV enthusiasm of the Beijing Olympics or the Sichuan earthquake couldn't slow it down. For example:

» The number of students taking classes increased to 545,000, a 24% increase from the same period a year ago.

» Higher enrollment and higher tuition increased revenues by 47% to $118.3 million.

» Profits increased to $1.17 per share, 34% more than last year.

» Deferred revenue — fees paid by students who haven't taken classes yet — grew to $42.6 million, a 60% jump from last year.

» New Oriental Education added 15 new schools and a learning center in the last quarter.

Those are great numbers, but more important is the reason demand for EDU's classes is so strong:

“Demand for our subjects training in China is high as kids are under tremendous pressure to obtain high scores on … college entrance examination,” said CEO Michael Yu.

Sample TOEFL Question #1:
Photography changed dramatically __________ introduced instant pictures.

(a) when Polaroid
(b) Polaroid
(c) when was
(d) it when Polaroid

Sample TOEFL Question #2:
Sebastian can drink __________ a gallon of beer in one sitting.

(a) mostly
(b) as much as
(c) so much that
(d) their

Many foreign students must learn Standard English before applying to an English-speaking university in the U.S., the U.K., Canada or Australia.
Many foreign students must learn Standard English before applying to an English-speaking university in the U.S., the U.K., Canada or Australia.

Hitting the Books In Hard Times

It doesn't matter if the Chinese economy grows by 4%, 6%, 8%, 10% or more — the demand for New Oriental's services is not going to fall and that is why New Oriental is the most recession-resistant stock you will ever find.

In fact, history has shown (at least in America) that people will spend more on education during difficult economic times.

You don't have to open a Chinese brokerage account to buy stock in New Oriental Education because it is traded on the New York Stock Exchange. New Oriental Education, symbol EDU, is just one of almost 100 Chinese companies that are listed on a U.S. stock exchange.

I'm not suggesting that you rush out and buy EDU stock today because the market is very volatile, but if I had to hitch my wagon to just one stock and one stock only, New Oriental Education is the one I would buy.

Best wishes,

Tony

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in