Business Week’s Inside Wall Street Columnist, Gene Marcial, recommended shares of China’s ATA:

a. Better strategy is to snap up shares of Chinese companies that will remain champs even after the summer Olympics is long forgotten.

b. ATA is a leading Beijing provider of computer-based testing services, including career-oriented educational programs. It went public in the U.S. on Jan. 8, 2008, at 9.50 per ADS (American Depositary Share) on the Nasdaq. It has since perked up to 12 for one basic reason: Earnings and revenues are going gangbusters.

c. Because of China’s booming economy, there has been a greater emphasis on education, and the result is a surge in demand for educational services—including testing programs

d. There are more than 100 million test-takers in China each year. And he notes that about 95% of those tests are still paper-based, which presents a significant opportunity for ATA since those tests will likely have to be converted to computer-based tests.

e. Gross margins from ATA’s testing and testing-preparation services range between 60% and 90%.

CONCLUSION:

With the Chinese stock market currently in a sluggish mode, the strong performance of ATA makes it quite an attractive stock; ATA represents a sensational growth investment idea

Track Gene Marcial’s picks at:

http://www.trackthepros.com/categories.php?category_id=404