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Buy: Raffles Education
By Pehon | January 11, 2007
Refering to 1Q Financial Result and Annual Report.
The Company reported a 34.1% increase in revenue 1Q06 result vs 1Q05. And from that, a 28.4% Increase in profit.
“An increase in profit has to be supported by an increase in revenue”
“A good stock must show a consistant >25% increase in quarterly profits for 2 years”
Even with the growth in businesses in Singapore and Overseas, they have been able to consistantly control their assets vs liabilities.
“A good stock must be able to control their assets vs liabilities”
With large institutional support and shareholding, although the number if issued shares exceed 3,000,000,000 shares, the number of “floating” shares is actually a small number.
“Good stock should have institutional support”
Yearly EPS has consistantly been improving from 2004 to 2006 (2.0-3.5-5.8), showing a minimum of 65% EPS Growth.
“You are buying a stock of the company, not the company. There must be an increase in EPS (earning over issued shares) vs increase in profits. There is no use of having 33% increase in profits with a negative growth in EPS (the company has recently issued a hell lot of shares)”
There are reasons to expect similiar growth over the next 1 year.
BUY now and sell target of $2.00
Vested $1.69 (11 Dec 2006)
Topics: RafflesEducation |
February 7th, 2007 at 1:49 pm
Hi, i’m very impressed with what you’ve written on your blog. Raffles Edu is now trading at 2.33. Are you still holding it or have you sold? i’m thinking of buying it, any advice?
February 7th, 2007 at 9:06 pm
I’m still holding it. gonna ammend my sell point. my advise to you is to buy after it goes XD. when peopel are no longer interested in the dividends.