Diamonds and Dogs
7/17/12New Oriental Education & Technology Group (EDU)
New Oriental Education was failing today as its score fell 34.37% to $14.61. The company tumbled the most on record after news was released stating that the SEC started a probe into the consolidation of its units' financial statements. New Oriental, China's largest education provider said yesterday the Securities and Exchange Commission is investigating its accounting practices. This marks the SEC's second Chinese company in a month to have its finances audited. New Oriental dropped to a new 52-week low, and saw its largest decline since its IPO in 2006. Although the SEC may not find any issues with the company's accounting; in this economic environment, investor's prefer to sell first and ask questions later.
StemCells Inc. (STEM)
StemCells Inc. is regenerating wealth for shareholders today, up 106.90% at $1.80. Shares of the company rocketed on news that a study of its neural stem-cell therapy restored memory and enhanced synaptic function in laboratory animals with Alzheimer's disease. Although the study showed that the treatment did not reduce the two proteins that cause the disease, improved memory function was shown. This is a large step toward a possible treatment for Alzheimer's. According to StemCells Stephen Huhn, "AD is a complex and challenging disorder. The field would benefit from the pursuit of a diverse range of treatment approaches and our neural stem cells now appear to offer a unique and viable contribution in the battle against this devastating disease."