New Oriental Education
Nearest Resistance: $14.50
Nearest Support: $9.50Catalyst: SEC Investigation Chinese for-profit education company New Oriental Education (EDU - Get Report) fell off a cliff earlier this week when the SEC announced that it was investigating the potential for fraud in the firm's financial statements. EDU has slid more than 46% in the last five trading sessions, and even though shares are bouncing today, that doesn't mean that now's a big bargain opportunity. We're still far enough from support that shares could have dramatically further to fall even if no more fundamental news comes out. EDU is just the latest in a string of Chinese companies that have been accused of committing fraud. Other names that have gone through similar drama in recent years haven't been resolved quickly and easily. Investors should steer clear of this name. As of the most recently reported period, New Oriental Education was one of Steve Mandel's Lone Pine Capital holdings.
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