While we are happy to have brought Neologic Anaimation Inc. (NANI) to the attention of penny stock traders when it was 0.086, we found another one, a better one. China Bilingual Technology & Education Group Inc. (CBLY) is an education company that owns and operates high-quality, K-12 private boarding schools in China. CBLY stock, unlike the highly promoted penny stock NANI, sees little attention from traders even though revenues increased 63.4% year-over-year to $10.2 million, compared to $6.2 million for the three months ended May 31, 2012.
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CBLY Stock Stats
Market Cap: 24.01M
(Nov 18, 2011): 2.65
(Mar 6, 2012): 0.31
Avg Vol (3 month): 3,798
Avg Vol (10 day): 857
Shares Outstanding: 30.07M
The Ministry of Education of the PRC announced last month plans to promote policies to encourage private capital investment in the field of education to promote the healthy development of private education. Such a statement is an incredible boost to the long term of the Company which currently operates 3 schools in China serving nearly 14,000 students. The schools regularly rank among the top schools in their respective regions for college entrance rates and national college entrance exam scores. The Company’s schools have earned excellent teaching reputations and are recognized for the success of their students and strong faculty.
The Company’s 10-Q for the three months ended May 31, 2012 were released today with the highlight being the increase in revenue. Beyond the top line number, EBITDA increased 71.5% year-over-year to $5.2 million, compared to $3.1 million for the three months ended May 31, 2011. The Company pays no income taxes because of its classification in China’s primary education sector. Net PPE and land use rights were $125.5 million at historical book value as of May 31, 2012, an increase of 294.7% from $31.8 million as of December 31, 2010, while stockholders’ equity was reported to be $48.0 million as of May 31, 2012, an increase of 51.3% from $31.7 million as of December 31, 2010.
For the nine months ended May 31, revenues increased 72.5% year-over-year to $31.5 million, compared to $18.3 million for the nine months ended May 31, 2011. EBITDA increased 68.8% year-over-year to $14.5 million, compared to $8.6 million for the nine months ended May 31, 2011.
There is no question that the growth factor of China’s educational system is a massive money maker for the pioneers to enter it in the early stages. Will Neologic Animation and their “Naniya World” ever kick it off with these kind of numbers, only in the dilution of NANI stock will they ever record revenues like this.
About CBLY Stock
China Bilingual Technology and Education Group Inc. is an education company that owns and operates high-quality, K-12 private boarding schools in China. Founded in 1998, the Company currently operates three schools encompassing the kindergarten, elementary, middle and high school levels with approximately 13,881 students and 1,876 faculty and staff.
The Company’s schools are located in Shanxi and Sichuan Provinces and provide students with an innovative and high-quality education with a focus on fluency and cultural skills in both Chinese and English. The schools regularly rank among the top schools in their respective regions for college entrance rates and national college entrance exam scores. The Company’s schools have earned excellent teaching reputations and are recognized for the success of their students and strong faculty.
To view the SEC filings for CBLY, click here.
Bottom Line: CBLY is a strong penny stock and is likely to spend just a bit more time on the OTC before uplisting to the Nasdaq in the near future. Another one of those investment, not trade, opportunities is what CBLY stock has to offer and, some speculators may have the patience to profit from such a company.
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