New Oriental Education & Technology Group Inc.

New Oriental Education & Technology Group Inc. (NYSE: EDU) is China's largest private educational services provider. Its educational programs and services include K-12 after-school tutoring, language training for adults, pre-schooling, primary and secondary school education, online education, and other services.

Key Highlights

• The company reported a 28.95% growth in net revenues to USD 1.19 billion in Q3FY21 (ended February 28, 2021) compared to USD 923.22 million in Q3FY20 (February 29, 2020).
• The gross margin for the quarter was 54.7%, a slight decline from 56.8% in Q3FY20.
• Net income for Q3FY21 was USD 151.33 million, up 9.88% from USD 137.72 million in Q3FY20.
• On August 18, 2021, the Beijing regulatory authorities published the full text of "Beijing Municipality's Measures to Further Reduce the Burden of Homework and After-School Tutoring on Students in Compulsory Education in Beijing."
• On July 30, 2021, EDU announced the indefinite postponement of its earnings release for Q4FY21 (along with the earnings conference call and live webcast scheduled for August 3, 2021).
• EDU's EBITDA margin for Q3FY21 was 8.5%, significantly lower than the industry median of 21.7%.
• Stock is currently trading below its crucial short-term (50-day) as well as long-term (200-day) SMA support levels.
• Stock is currently leaning close to the lower band of the 52-week range of USD 1.68 to USD 19.97.

Technical Price Chart (as of August 24, 2021). Analysis by Kalkine

Conclusion: EDU's stock price increased tremendously in the intraday movement after falling 88.33% in the last six months, and its RSI Index is 34.12. Considering the meagre fundamentals (particularly after the recent regulatory crackdown), US-China trade war, and other technical indications, we recommend an "Avoid" rating on the stock at the current price of USD 2.14, up 25.59% as of August 24, 2021, 1:04 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.

Endeavour Silver Corp.

Endeavour Silver Corp. (NYSE: EXK) operates as a mid-tier precious metals mining company. It currently owns and operates three underground silver-gold mines in Mexico, including the Terronera mine project, and also has a portfolio of exploration and development projects in Mexico and Chile.

Key Highlights

• The company reported a 136.50% growth in total revenue to USD 47.78 million in Q2FY21 (ended June 30, 2021) compared to USD 20.20 million in Q2FY20.
• It sold 1,120,266 oz silver and 9,810 oz gold at average prices of USD 26.82 / oz silver and USD 1,866 / oz gold.
• Net income for Q2FY21 was USD 6.66 million vs. a net loss of USD 3.29 million in Q2FY20.
• On July 19, 2021, EXK signed an agreement to acquire Canamex Gold Corp.'s 100% stake in the Bruner gold exploration property in Nye County, Nevada, in exchange for a cash payment of USD 10 million.
• On June 08, 2021, the company discovered the potential for high-grade silver-gold mineralization in various structures near the Terronera vein (Terronera project) in Jalisco, Mexico.
• EXK's EBITDA margin for Q2FY21 was 15.8%, significantly lower than the industry median of 40.1%.
• Stock is currently trading below its crucial short-term (50-day) as well as long-term (200-day) SMA support levels.
• Stock is currently at the lower to mid-point of the 52-week range of USD 2.99 to USD 7.76.

Technical Price Chart (as of August 24, 2021). Analysis by Kalkine

Conclusion: EXK's stock price increased 34.82% in the last nine months, and its RSI Index is 40.21. Considering the growth in top and bottom line, new project acquisitions, and other technical indications, we believe present trading levels adequately reflect the decent business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an "Expensive" rating on the stock at the current price of USD 4.40, up 1.27% as of August 24, 2021, 1:08 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.  

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