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.
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)
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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