China Education Alliance Reaches Milestone
China Education Alliance, Inc. (CEUA) shares opened higher after it announced approval for a NYSE Amex listing, which should help increase liquidity for the stock and visibility for the company.
China Education Alliance, Inc. [[CEUA.OB]], an education service company that provides online education and onsite training in China, announced that its common stock has been approved for listing on the NYSE Amex market. The company’s effective trading date and new symbol are expected to be announced very soon.
Listing on a larger exchange like the NYSE Amex helps companies like China Education Alliance raise their profile in the U.S. investment community, increase the marketability and liquidity of the stock, and further expand their investor base by opening up investment to many larger funds forbidden to invest in OTC stocks.
Last quarter, China Education Alliance’s net income rose 66% to $3,229,481, or $0.15 per share, on revenues of $4,829,488. Meanwhile, the company’s balance sheet remains robust with a current ratio of over 15x and more than $27.6 million, or $1.26 per share, in cash on its books as of March 31, 2009.
China Education Alliance’s trailing price-earnings ratio stands at just around 11x when its growth rates are in excess of 60%, which suggests that the stock may be undervalued on a P/E to growth basis. Many investors are hoping that this discount will be corrected when the stock begins trading on the NYSE Amex.
In the end, China Education Alliance’s listing on the NYSE Amex is a positive for investors as it could help correct its apparent discount, while also increasing liquidity and access by institutional investors. As a result, long-term investors may want to take a look at this stock going forward.
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