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  "documentTitle": "TAL Education Group (TAL)",
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  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-06-13 00:00:00",
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  "notes": "The slide uses a series of logical arguments to challenge the validity of a corporate transaction.",
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      "text": "An even bigger question, though, is: if this had been a real disposal, why in the world would TAL agree to take it back at the same price?",
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      "text": "The $50 million price tag is also surprising when compared to TAL's carrying value of the business of zero. Because both the consideration and the reported gain were $50.0 million, we know the carrying value was zero.",
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      "text": "TAL therefore purports that Changing Edu bought GZ 1-1 at a current-year PE ratio of over 150x. As shown above, from January through July 2015, GZ XRS EdTech showed net income of only $0.17 million.",
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      "text": "As discussed above, we believe GZ XRS EdTech operated the GZ 1-1 business. TAL made additional disclosures that support our belief, and confirm that a $50 million claimed sale price fails the laugh test.",
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      "text": "An even bigger question, though, is: if this had been a real disposal, why in the world would TAL agree to take it back at the same price? That would be like winning the lottery and then throwing away the ticket before collecting the winnings.",
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      "kind": "quote",
      "text": "“...our revenue from one-on-one in Guangzhou was around 10%, 9% in Q1 and 11% in Q2, of the overall one-on-one revenue” — CFO Rong Luo",
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      "text": "114-119 Footnotes detailing financial calculations and sources.",
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      "text": "5. We believe that in August 2015, no rational actor would have paid $50 million for GZ 1-1.",
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