Shameless earnings play: CEDU

I sold out of FMCN at a 2% loss; I could have booked a 1% gain today but I forgot to put in a limit order. So it goes; I am not abandoning my strategy, I just desperately wanted to buy more CEDU.

I really cannot stress how awesome this company is and how completely invisible it is to the rest of the market. Its online degree segment, which accounts for the vast majority of its revenue, has a gross margin of 79.3%. Its tax rate increased to 25% this year after China passed the new Chinese Enterprise Income Tax Regulation; however, the company should qualify for the status of ''new and high technology enterprise,'' subject to the 15% preferential tax rate. I do not really know how you could ever say that this company is not a ''new and high technology enterprise,'' and when they obtain approval from the Chinese government, that should provide a nice boost to shares. Oh, and did I mention 20%+ YoY growth and the fact that their clients (large Chinese universities) are tied into 20 year contracts?

Earnings came out after the bell and the company beat on EPS, beat on revenue, and beat on guidance. I am absolutely giddy.

Full disclosure: long CEDU.