As After-School Tutoring Cleanup Wraps, 17 Education Looks Set to Stay the Course

Company announces a modest share buyback and reverse share split, signaling it intends to try to maintain its business and New York listing Key points: 17 Education has announced a $10 million share buyback and 4-for-1 reverse share split that will bring its stock price to around $4, based on its latest close Company currently gets more than 98% of revenue from K-12 after-school tutoring that for-profit companies can no longer offer following a government cleanup  By Doug Young With much of the regulatory uncertainty now out of the way,…

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Education Cleanup Claims First Victim as OneSmart Halts Most Operations

Board approves ‘the suspension of all of the company’s education programs and learning centers in China,’ according to statement Key takeaways: OneSmart says its board has approved a halt in operations for all of its education programs and learning centers in China Chinese education stocks are dividing into two camps of above and below $1, with day traders emerging as the driving force for the latter By Doug Young The bloodbath among education stocks that used to be some of China’s biggest rising stars on Wall Street has claimed its…

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Gaotu Urges Investors to See Education Cleanup as ‘New Beginning’

Company says it will focus on professional education and more holistic learning courses going forward Key takeaways: Gaotu discloses K-12 education services targeted in government education cleanup accounted for 94% of its revenue in three months through June Company says it will focus on education for adults, test preparation and holistic-oriented ‘STEAM’ learning in the future By Doug Young Think of it as a new beginning, rather than the end, of an era. That was the message coming from former education powerhouse Gaotu Techedu Inc. (GOTU.US) in its latest financial…

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Education Stocks Could Offer Bargains – For Those Who Choose Correctly

Massive selloff saw Chinese educator stocks fall as much as 70% on Friday on fears government could ban them from operating for profit Key points: Latest government ‘opinion’ document could ban private after-school education companies from operating on for-profit basis Policy is likely to meet with industry pushback, and also protest from parents who see it as too extreme By Doug Young This week may look like any other for most people, but it has turned into a sudden life-or-death situation for many of China’s private education companies. The group…

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