While most of the small/mid caps are under pressure today, there is one sector which is doing well : early education. Share price performance : + 2 % for GEM (new 52 weeks high) and + 2.8 % for EVO.
Main news I have seen about this sector : large wage increase (+ 15 % on a 2 year period) to come for employees due to staffing crisis. Early education centers will receive fundings for the wage increase, but will have a limit for fee hike.
Stocks in this sector look quite cheap, base on PE. It seems highly subsidised, so I guess that there is always a risk that earnings may be under pressure in case of any change in regulation.
