If you like cheap stocks that are capable of making multi-bagger price moves, I invite you to check out ATA Creativity Global (NASDAQ:AACG). Just be advised that the AACG stock price can move down just as easily as it could move up.
For that reason alone, I wouldn’t recommend taking a large-sized position in the stock. Instead, you can own a few shares just to speculate on a stock that might eventually go up 5x or even 10x.
Or, it might go to zero. Who really knows? But before you even think about buying AACG stock, it’s important to gain an understanding of what ATA Creativity Global does as a business.
Rest assured, we’ll delve into that topic. First, however, we should get into the nitty-gritty of the stock’s wild, weird price action.
A Closer Look at AACG Stock
Let’s start off with a normal day for AACG stock. On March 26, the share price rose nearly 24% in a single trading session, landing at $4.92.
There wasn’t any company-specific news of significance on that day. In other words, it’s entirely possible for this stock to move dozens of percentage points with no specific catalyst.
Here’s an even more extreme example. On Feb. 3, AACG stock was trading at $1.36; the next day, it rocketed to a 52-week high of $19.75.
Again, there wasn’t any news of significance to accompany or justify that price move. So, perhaps it shouldn’t be too surprising that the stock plummeted to $6.33 the next day.
So, at least now you have a more complete idea of how AACG stock behaves. This isn’t a safety play, by any means. And when the share price travels fast and far, that’s just par for the course.
An Education Company with a Difference
You might never have considered investing in an education company that operates abroad. However, ATA Creativity Global might pique your interest.
Based in Beijing, ATA Creativity Global describes itself as “an international educational services company focused on providing quality learning experiences that cultivate and enhance students’ creativity.”
The company’s educational services are primarily provided through its training center network. These services include portfolio training, research-based learning and overseas study counseling.
If you browse through the ATA Creativity Global investor presentation, you’ll quickly get the impression that its target audience is students of the arts.
And, you’ll probably also realize that the enrolled students aren’t necessarily seeking a typical formal education. Rather, they’re looking for enriching experiences.
I’m an educator myself with years of experience as a teacher in public and private schools. So, I find ATA Creativity Global to be particularly appealing.
No ‘Drill and Kill’ Here
If you’re like me, then you might feel that the emphasis on grades and standardized testing in schools is overdone.
ATA Creativity Global is appealing because it takes a different approach: it prioritizes the student’s enrichment rather than just getting a certificate at the end of the program.
For too many years, I witnessed the impact of what teachers call the “drill and kill” approach to education.
By this, I mean keeping the students cooped up in a classroom for many hours in preparation for a battery of high-stakes standardized tests.
ATA Creativity Global’s unique, student-centered (as opposed to testing-centered) approach to education seems to be succeeding. In fact, the company already has 22 centers in 21 cities across China.
And don’t get the impression that an education at ATA Creativity Global is impractical. The fact is, ATA Creativity Global has sent some of its students to a number of top-tier art schools around the world.
The Bottom Line
You don’t need to be a school teacher to appreciate ATA Creativity Global’s unique approach to providing educational experiences.
But then, this doesn’t mean that you should go all-in on AACG stock. It’s a fast mover, so for goodness’ sake, please keep your position size small.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.