- Forbes looks at recent hits to New Oriental Education (EDU) and Ambow Education (AMBO) stocks and points out why U.S. investors may be worried about the for-profit education companies.
- New Oriental shares are down 53% since the beginning of 2012, and Ambow shares are down 60% in the same period if time, according to Forbes.
- New Oriental's investigation by the S.E.C. and trepidations about potential fraud and risks posed by Chinese companies more generally have inhibited investment.
From the article:
By now, I’m sure you’ve heard all about the rigors of China’s national sports system that snatches up supple young kids and grinds out Olympic champions. How these young athletes are isolated from their family and pushed to the brink by grim-faced coaches who focus solely on medals, not child welfare. Here’s a typical account from a Chinese gymnastics camp. Actually, this story predates the Beijing Olympics, but could easily run again with a few tweaks (and possibly has). And, while doping allegations against record-breaking swimmer Ye Shiwen are pure speculation at this stage, press coverage of her training regime hits on some familiar themes. The sub-headline in this story by Britain’s Daily Mail hammers it out: ‘How Chinese children are taken away from their families and brutalized into future Olympians’. ...