Raffles Education: Is it Really Bottoming Up?

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Technically base on chart pattern RafflesEducation is finding a bottom at $0.28. If (and a BIG IF) RafflesEducation can turn around in the next few quarters and improve the financial performance, this price level is very attractive.

However current financial performance of Raffles Education is getting WORSE quarter over quarter. The Net Operating cash flow turns from bad to worse for the past 3 quarters (From $48 million in Sept 2009 to $580k to NEGATIVE $6.7 Million in Mar 2010).

ROA degraded from 16 to 10 to 4.
ROE degraded from 30 to 26 to 10.
Current Ratio is 0.9 shows that the company has liquidity problem (not surprising because in Mar 2010 quarter, the company burned $6.7 million cash per quarter)

The company performance has been really bad for the past one year. Not the right time to make any entry now until the Raffles Education publishs the latest financial performance. Need to see whether there is any improvement quarter over quarter.

If the financial result is bad, the stock price may go even lower than $0.28!

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Dapai: It is Coming…..

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Dapai has been moving up quietly recently and closed with a bullish marubozu candle with 8.7 million shares traded today. Today closing is above the 200D MA and also 61.8% Fibonacci Retracement Level.  Technical Indicators like MACD, RSI, Stochastic, Bollinger Band and SAR Parabolic show the bull is coming back. However, this stock need good trading volume to confirm the breakout to start an uptrend.

Fundamentally this stock is super under value with PE just 3.8 (stock price at $0.245) but unfortunately no one is interested. Average PE for past 3 years = 3.6.

Base on FY2009 Financial:

  • Dividend Yield = 5.4%
  • NAV = $0.30
  • Net Profit Margin = 14.2%
  • ROA = 19%
  • ROE  = 21.5%
  • Current Ratio = 4.9
  • Debt to Equity Ratio = Net Cash

Watch closely on this stock! Good for long term buy and hold until other peoples find out this gem.

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China HongXing: Will Continue the Up Trend if ….

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China has been on uptrend for the past two weeks and currently trying to establish a good support at about $0.155 (50% Fibonacci Retracement Level) & $0.16 (200D MA). If China Hongxing does not bounce down from this 200D MA resistance,  a new uptrend will start as the stock moves above 20D, 50D and 200D MA. Upside potential is huge if $0.155 proves to be a very strong support.

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