China Liberal Education Holdings Ltd (NASDAQ: CLEU) is headed for the top in the market this morning, but with no press releases, many are wondering why. The gains seem to be the result of multiple SEC disclosures showing quite a bit of institutional interest. Here’s what’s going on:
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- CLEU Climbs on Institutional Interest
- What Is China Liberal Education Holdings?
- Risks to Consider Before Buying CLEU
- Final Thoughts
CLEU Climbs on Institutional Interest
As mentioned above, China Liberal Education Holdings is climbing in the market today after four different SEC filings showed that institutions are taking serious interest in the stock.
Here’s what the SEC filings tell us:
- Fulai International Limited. Fulai International Limited reported that it owns 399,601 shares of CLEU stock, giving it 6.31% voting power.
- United Glory Global Limited. Another SEC filing outlined the fact that United Glory Global Limited now owns 514,486 shares of the stock, representing a voting power of 8.12%.
- Ever Alpha Global Limited. In the next SEC filing, Ever Alpha Global Limited disclosed the ownership of 2,057,942 shares of CLEU stock, representing a voting power of 32.49%.
- Man Woo Limited. Finally, Man Woo Limited disclosed the ownership of 649,351 shares of the stock, bringing its voting power to 10.25%.
Retail investors tend to follow institutional investors. After all, following the big money on the way to the big money is the general idea. With four institutional investors taking large stakes in China Education Holdings, it only makes sense that investors are excited this morning.
What Is China Liberal Education Holdings?
China Liberal Education Holdings is a Chinese education company that has the goal of providing Chinese students with the tools and education they need to excel in the global economy.
To meet that goal, the company jointly manages educational programs with schools, provides overseas study consulting services, customizes school software, and much more.
Ultimately, China Liberal Education Holdings is an education-focused company with the goal of improving the educational experience for all students in China.
Risks to Consider Before Buying CLEU
If you’re thinking about buying CLEU stock, you’re going to have to be willing to accept risk. After all, any stock you buy will come with risk. Some of the most significant risks to consider include:
- Speculation. China Liberal Education Holdings is a relatively young company. In fact, it was just founded in 2019. As such, there is no long-standing historical performance to look at when investing in the company, making an investment a speculative bet.
- Penny Stock. CLEU is a penny stock and comes with the increased risk you would expect from these stocks. As mentioned above, the company’s business model isn’t quite proven yet. Moreover, the stock experiences high levels of volatility, which are great on the upside, but painful on the downside.
- Profitability. Finally, CLEU is a long way from profits. Sure, the company generates revenue, but it’s not enough to cover expenses. As a result, the company is highly dependent on the funds it has in the bank. If these funds run dry, the company may look to raise capital in the market, which would lead to dilution and declines.
As is always the case, there are risks to consider before making a decision to invest in China Liberal Education Holdings stock. Nonetheless, those risks may be outweighed by the potential for gains here.
The company has made incredible progress in its two years in existence. As a result, it has garnered the attention of several institutional investors. In fact, the four disclosures together represent institutional ownership of more than 57%. There’s gotta be something to that. All in all, CLEU stock is one to watch closely.