OIG Meeting Oct 20th

We finally decided to sellĀ  China Educational Alliance (CEU). This stock was bought around 6 months ago in the spring semester with the intention to diversify our portfolio in the BRIC countries. And its price has gone down ever since.

After a detailed background search, we found that there are just so much that we didn’t know about this company. First, it is not a Chinese company, which is quite contrary to its name and our previous thoughts. CEU originally grew out of a shell company established in North Caroline specializing in realty. Second, it’s revenue generators are suspicious. Investigation shows that it is actually a holding companies with at least 7 different business subbranches in industries as diverse as consulting, tutoring, online resources and vocational information. Their tutoring centers have received complaints of delayed employee payments. The educational game that they claimed to bring them the most revenue is dysfunctional and virtually unknown in China. Let alone that nothing in Chinese or English could be found about their consulting company. (For detailed information and a PowerPoint presentation, please contact lsun@brynmawr.edu)

The proceeds of this sale will amount to around $2,000, which we will use toward club donations next week.