Raffles Education

[Aspellian]

u should make this into a short film and submit it for cannes film festival

I can be script writer. You can be director.
We can get Lena-Jie to be lead actress. Who should be lead actor?? peter lynch or winston??

confirm win Cannes prize!

[millionairemind]

November 3, 2009, 6.00 pm (Singapore time)

Raffles Education Q1 net profit falls 55%

By EMILYN YAP

Raffles Education on Tuesday posted a net profit of $14.05 million for the first quarter ended Sept 30 - down 55 per cent from a year ago.

Revenue slipped 3 per cent year-on-year to $51.55 million.

'We continued to invest in organic growth, opening six new colleges in India, Indonesia and China during the past financial year and targeting to open eight more in the current financial year,' said Raffles Education CEO and chairman Chew Hua Seng.

The group added that it will continue to look for strategic acquisitions.

[Aspellian]

Wonder at which point in time will the faithful Raffles shareholders throw in the towel?? when raffles is in the red?

The only for Raffles to continue to meet growth targets is to boot-strap more and more acquisitions... and become more and more messy, more and more debts and more risks of another Oriental.

[winston]

RAFFLE EDUCATION CORP LTD - BNP Paribas kept its "buy" rating on the education service provider despite a 56 percent fall in its fiscal first-quarter net profit, citing optimism over the new student enrolment in the near terms that should raise
income.

( What has changed ? They can get new students in the future but not in the past ? ).

Source: Reuters

[winston]

Not vested. So this positive analyst is not so positive anymore ?

From DBS:-

We are downgrading Raffles Education from Buy to Hold with TP reduced to $0.42 from $0.68 after 1Q10 net profit of SGD14.1mil (-56% y-o-y) came in below expectations.

Higher operating expenses and the absence of gains were the main reasons for the huge drop in earnings. While there has been a sequential improvement q-o-q, the ramp up has been slower than our expectations.

As such, we have cut our FY10/11 earnings forecast by about 38% as we trimmed back our assumptions on enrollments and factored in higher operating expenses from the new colleges. . Our TP is based on 18x FY10F PE, a discount to regional peers’ average.

[Musicwhiz]

Not vested. So this positive analyst is not so positive anymore ?

From DBS:-

We are downgrading Raffles Education from Buy to Hold with TP reduced to $0.42 from $0.68 after 1Q10 net profit of SGD14.1mil (-56% y-o-y) came in below expectations.

Higher operating expenses and the absence of gains were the main reasons for the huge drop in earnings. While there has been a sequential improvement q-o-q, the ramp up has been slower than our expectations.

As such, we have cut our FY10/11 earnings forecast by about 38% as we trimmed back our assumptions on enrollments and factored in higher operating expenses from the new colleges. . Our TP is based on 18x FY10F PE, a discount to regional peers’ average.

18x PER ? Where's the margin of safety??

[Aspellian]

Not vested. So this positive analyst is not so positive anymore ?

From DBS:-

We are downgrading Raffles Education from Buy to Hold with TP reduced to $0.42 from $0.68 after 1Q10 net profit of SGD14.1mil (-56% y-o-y) came in below expectations.

As such, we have cut our FY10/11 earnings forecast by about 38% as we trimmed back our assumptions on enrollments and factored in higher operating expenses from the new colleges. . Our TP is based on 18x FY10F PE, a discount to regional peers’ average.

18x PER ? Where's the margin of safety??

new price target of $0.42 by using 18X PER. what if the PE ratio is only 12X (for a struggling company trying to stabilise itself and find its footing between a small (rapid-growing) to a mid-size Edu player.

"discount to regional peers" - but alot of these regional peers are listed in NYSE and are huge Edu players and growing super fast!!

Raffles edu is paying for the steep learning curves of venturing into different regional markets all at one go. wonder who is the first fund manager to throw in the towel??

[LenaHuat]

The writing was on the wall for the last 2 years. I suppose mgmt has either lost control or too laid back (?)

[stilicon]

This company has been selling off for several days now with particularly heavy volumes. Some big institutional must be selling every day.

Private education will inevitably develop in the future, and especially in Asia where there is a huge young population. You could describe this as one of the few almost evident secular wave.

Still Raffles Edu. seems to be a complete failure. Why ?

They had some problems last year with Oriental Uni, right ? But what about their development project in the region (Vietnam, India ?…) Is it completely empty ?

I remember that, to Lenuhuat, all this was obvious several months ago. Why ?

And also, what about all those dithyrambic research notes from CIMB (with a TP of S$0,70 on 17/11/2009), and OCBC (TP S$0,6 on 25/08/2009) or BNPP (TP S$0,78 on 23/7/9) or CS (TP S$0,75 on 8/7/2009) ?

Today the last quote is S$0,375 ! Are those analysts completely stupid ? or do they get paid ? or maybe Raffles Edu. will prove a good company in two or three years ?

[kennynah]

And also, what about all those dithyrambic research notes from CIMB (with a TP of S$0,70 on 17/11/2009), and OCBC (TP S$0,6 on 25/08/2009) or BNPP (TP S$0,78 on 23/7/9) or CS (TP S$0,75 on 8/7/2009) ? Today the last quote is S$0,375 ! Are those analysts completely stupid ?

i tend to think these analysts are far from stupid.... these so-called analysts get paid a salary from their employers and not retail investors.... they are thus beholden to their pay masters to publish such analysis that may well have hidden intentions....

it puzzles me tremendously that year after year, retail investors continue to believe almost everything they read, without much thought process put in the activity....especially when it comes to analysts reports..

in the world of trading/investing, no one is to be absolutely trusted...since one person's loss is another's gain...it's a dog eat dog world...

i have given up on reading analysts reports for a long time now... at best, these reports are like Crammer's recommendations...to be faded...