Raffles Education: Is it Really Bottoming Up?

  • Post author:

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!

Continue ReadingRaffles Education: Is it Really Bottoming Up?

Raffles Education – Bottoming Up?

  • Post author:

Looks like Raffles Education is likely to rebound  for the next few days because a Hammer is observed today. Hammer candlestick is a reversal pattern. In addition, the recent sell down pushed Raffles Education close to 100% Fibonacci Retracement Support Level. RSI and Stochastic are at Oversold region but are showing reversal sign of turning up. Immediate supprt at $0.275. Immediate resistance is 20D MA at about $0.33.

Continue ReadingRaffles Education – Bottoming Up?

Raffles Education is Falling Down, Faling Down, Falling Down!

  • Post author:

Raffles Education continues to fall in the down trend and forming falling wedge.  The stock price is currently below 20D, 50D and 200D MA and the chart is very bearish.

Things to watch out for trend reversal (ie. stock price to move up)
  • The stock price breaks the falling wedge resistance with healthy volume.
  • The stock price stay above the falling wedge resistance turned support line.
  • The stock price cross 20D MA.
Continue ReadingRaffles Education is Falling Down, Faling Down, Falling Down!