Youdao: The Way To Play Chinese Digital Education (NYSE:DAO)

Investment Thesis

Youdao (DAO), a subsidiary of NetEase (NTES), is an online education platform focused on the China market. From a macro perspective, online education is seeing strong tailwinds given an easier engagement model vs. in-person tutoring centers as well as COVID-related shifts towards socially distant education models. This has driven strong performance YTD as illustrated below. Although the stock has come down quite a bit from August highs, it is still at a material premium to the IPO price in Q4 2019.

Data by YCharts

The company generates revenues from two core segments: online education which accounts for 66% of revenues and digital advertising which accounts for 33% of revenues. Online education specifically consists of online courses and online education tools (dictionary/notebook) with a focus on K-12 and a growing platform focused on continuing education for adults.

A unique technology offering that Youdao has is the Smart Pen offering.

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Edition of Shakespeare’s last play found in Scots college in Spain

The volume dating to 1634 was found by an academic researching Scots economist Adam Smith

A rare edition of Shakespeare’s last play has been found in a Scottish Catholic college in Spain.

The Two Noble Kinsmen, written by Shakespeare with John Fletcher, was found by a researcher investigating the work of the Scots economist Adam Smith.

The 1634 printing could be the oldest Shakespearean work in the country.

In the 17th Century the seminary in Madrid was an important source of English literature for Spanish intellectuals.

The Two Noble Kinsmen was included in a volume made up of several English plays printed from 1630 to 1635.

Dr John Stone, of the University of Barcelona, said he found it among old books in the library of the Real Colegio de Escoceses – Royal Scots College (RSC) -which is now in Salamanca.

The book is still in its original 17th Century leather
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