Edge Seven Financial Sydney Blog 01

Navitas – Education is the Key

Navitas Limited (ASX:NVT) is a global education provider with 120 colleges across 31 countries servicing 80,000 students.

I have been waiting a couple of years to buy Navitas shares at a reasonable price at the right time.

Here is why Navitas was a buy for me the week before last at $4.20.

Fundamentals:
1. Consistently high return on equity
2. Little debt
3. Amazing cash flow
4. Good long term manager – well run business
5. History of growing earnings
6. Good dividend payer

Plus a bonus
On 30 October, that evening after I bought China’s 5th Plenum was announced.
Key outcome (4) from the 5th Plenum said that China will “Promote tuition fee exemption; Fully subsidise students with financial difficultes” (righto)

Technicals:
1. Navitas broke an 18 month downtrend four weeks ago and lingered above the downtrend for a few weeks.
2. From there, the probability of good things happening has increased further enhanced with a positive share price this week.

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The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

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