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  "documentTitle": "New Oriental Education & Technology Group (EDU)",
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  "authorName": "Carson Block",
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  "presentationDate": "2012-07-18 00:00:00",
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  "notes": "The slide uses a bar chart to compare EDU against peers (XRS, XUE) across various service metrics to support the argument that EDU is underperforming.",
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      "text": "This contradicts EDU's frequent mention of its \"premium pricing\" in China to explain how it is producing 60% gross margins to investors.",
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      "text": "Comparison of EDU, XRS, and XUE across service metrics (Track Record, Teacher, Learning Experience, Price-Performance, Flexibility, Equipment, Customer Service)",
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      "text": "The only segment in which we perceive that EDU has a real pricing advantage is POP Kids. Parents of young children are the least price-sensitive segment...",
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      "text": "In a graph on p. 17 of Credit Suisse's report, Credit Suisse noted that rather than pricing its services at a premium, EDU priced virtually all of its English classes below those of TAL Education...",
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      "kind": "paragraph",
      "text": "EDU’s VIP business gross margin seems to be greatly overstated as well. Louis Hsieh claimed that VIP business gross margins reached 54% in FY2011...",
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      "kind": "quote",
      "text": "So we’re like Wal-Mart but with a Tiffany price. So we offer one thing under one roof for them and so we’re doing the same thing now to K-12.",
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      "kind": "quote",
      "text": "\"So we're like Wal-Mart but with a Tiffany price. So we offer one thing under one roof for them and so we're doing the same thing now to K-12.\" — Louis Hsieh, EDU Q1 2011 earnings call.",
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      "text": "53 Louis Hsieh, EDU Q1 2011 earnings call. 54 Louis Hsieh, EDU Q4 2011 earnings call.",
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