Stok dropped even more -- so surprising --- now only 66 cents. Since sometime in January 2011 when it was trading above $1 till now, this bugger has dropped about 40%!
Raffles announced latest results --- net profit fell from $30+ m to $15+ million. No wonder the stock cannot rise,not when the business continues to deliver lower & lower profit. Once Raffles was the darling of investors. I remember a newspaper article praising it to the sky and the fact that anyone could have become a millionaire on Raffles stock.
Is Raffles stock being manipulated downwards as some people tink? I dont know. The stock may attempt to rise and making a few % gain is possible but what about the longer term of the business prospects? Particularly, what about OUC? This is supposed to be the catalyst, according to analysts.
start up expenses from the expansion of new colleges continued to cause a drag on REC’s earnings, as revenue contribution did not grow fast enough to assuage the falling enrolment numbers plaguing its China operations. Due to the weak results, we pare our FY11 and FY12 core earnings estimates by 33.7% and 20.6%, respectively. Our fair value estimate thence declines to S$0.65 (previously S$0.815), still based on 18x FY12F EPS. Maintain HOLD.
hongsan willing to bet on bottom:
At first I placed my buy order at 57.5 cents but after looking at STI dipping, I then ammended it to 57 cents. End of the day still not fill. Never mind because I am not in the hurry and may try again tomorrow. Usually before I buy, I look at the STI direction because most of the time the stocks will move in tandem with the index.
And if everything is O.K, I shall look at the intraday 60 minutes chart for an entry. I will wait for cycle low (stochastic) and the momentum indicator (macd) for a sign of gaining in strenght. Other trader may just be comfortable with low price entry.
I can't disagree on that because as long as your setup work for you in a long run and you making money, then it's a success because in a stock market there are many loser then winner. I am one of the loser but I have been correcting myself alot this year. In this business, it take alot of real money experience's losses to polish oneself in order to succeed. There is no shortcut for most people unless your first career is with a trading fund manager and have been working with them for many years. Cheers Bro.
Nice 5.5 cent bounce up today to close at 54 cents. That's 11%!
Kim Eng today: As REC starts to reap the fruit of its investment in the past two years, we expect the sustainable earnings recovery in FY Jun12 to drive a meaningful re-rating of the stock. We trim our SOTP-based target price to $0.80, from $0.90, after removing the development surplus from our valuation model in view of the timing uncertainty. Maintain BUY.
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