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now that the price has drop so drastically, i wonder will ppl still interested to take up the new placement? or will they whack up the price to make it look attractive? just like genting
Raffles Education must be not good in Investment, credit, debt management education. Though very good in Placement Education, it has a lot of DEBT WORRY. Raffles Education appears to be entangled by Sub-Prime Investment.
One Placement at S$0.381.
One Placement at S$0.62?
One Placement at ????
There is really little in EDUCATION.
Beware of ABC Learning, Informatic, Nanyang Institute and most of all ORIENTAL.
There is a lot of UP FRONT costs in Education.
Number of student DEMANDS is FIXED especially in the LONG TERM but the number of Suppliers is INCREASING BY the DAY!
There is a lot of AIR BUBBLES in education business.
It is Worth S$0.381 at most until all problems are settled.
SIMPLY look at its NAV.
Why are you paying SO MUCH for something that is NOT THERE.
CHECK OUT the Schools' premises yourself and ....
BEWARE of another CASH CALL!
#### MONEY REALLY NOT ENOUGH ####
(OCBC) 28/5/09 Raffles Education Corp
OUC debt update.
We met up with the Raffles Education Corporation (Raffles) recently to obtain some updates. Raffles confirmed that there will be no interest paid for debt pertaining to its Oriental University City (OUC)
purchase and that the subsequent payments of RMB1.5b would be phased into three tranches. The next major payment of RMB500m will be due on 30 Apr 10. We believe the interest-free deal was struck as a give-and-take agreement due to non performance of "Material Conditions" stated in the Schedule of the original agreement dated 11 Oct 07. In a gist, the main unfulfilled conditions include
(1) transfer of Langfang Vocational and Health Schools (contributes up to 20,000 students) and;
(2) obtaining permits for 1 private college and 2 public-private schools.
Securitising OUC in progress.
Management continues to be optimistic that OUC is a well worth investment to embark on its next phase of growth. The listing plan to pay for this asset took its next step with the recent debt
deferment deal where 60% of OUC debt is to be repaid in full "upon the recovery of the economy from the current global economic crisis." Post listing, the provincial government will likely own a significant part of OUC. While we are uncertain of the provincial government's intention with its shares, we think that it would still keep a stake seeing that it can be a cash producing asset that has now been turned around by Raffles. As education is largely driven by regulators, the government's stake in the listed entity will be seen as an advantage for Raffles.
ORIC update.
Separately, Oriental Century (ORIC) released a 17-page update by PWC on 26 May 09. PWC basically indicated that it would be impractical to trust any of the accounts. While one of the three operating
entities seem to be operationally profitable at this point, PWC warned of possible significant attrition of student numbers due to lack of confidence as a going concern. Raffles has indicated that it could possibly acquire ORIC if it ascertains all its documented and undocumented liabilities.
Paring expectations for the year.
We have pared down our estimates for FY09 and FY10 as we mitigate our expectations on the rate of growth its organic expansion can bring. Our fair value is tweaked to S$0.57 (prev. S$0.59) at 12x FY10F PER. We are maintaining our BUY call and will be incentivised to re-peg when student enrolments exceed our expectations.
I will not chase after stocks, expect pullback or consolidation to 15sma.
There will b bound to have a pullback or consolidation.
If there is no pullback or consolidation, I will give it a miss as to me the risk is greater than the reward. Dun miss the forest just for this tree.
ruanlai ( Date: 15-May-2009 09:01) Posted:
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rumours right issue coming, BB pushing up the price........ Be ware!!! Do not get trap.....
60cents soon
http://www.raffles-education-corporation.com/
investor confidence back since they declared they are able to survive as banks showing no signs of withdrawal of support and the willingness of the chinese government to defer payment of $100million...
looks like gona rights issues
do you guys got any news on this counter
by looking at my chart see okay
and the last minute jump,i was quite puzzle though
Summary:
Raffles Education Corporation (Raffles) reported a loss-making quarter (-S$16.5m) as it had decided to book in S$33.1m as allowance for impairment charges for its associate Oriental Century (ORIC). Excluding this non-cash charge and land sales (to pay for Oriental University City, or OUC), Raffles’ 3Q09 net profit would have come in at S$14.7m.
Management also updated on its plans for securitising Oriental University City (OUC) through a listing in early 2011. Executing this securitisation plan with its creditors (mainly the provincial government) will enable Raffles to pay a majority part of the asset through shares.
Raffles has terminated its Dividend Re-Investment Scheme due to a poor take-up and will not be paying dividends this quarter to conserve cash.
With the ORIC write-down behind it, coupled with a securitisation plan for lesser cash payments for OUC, we think it would more fair to value Raffles from FY10F where earnings are less skewed. We have rolled our valuation forward to 12x FY10F PER and obtain a fair value of S$0.59. Maintain BUY. (Kelly Chia- OCBC Research)
http://info.sgx.com/webcorannc.nsf/ef3ba6cb188613ea482571b2003641d3/d1fa6cedf62aadda482575af0035a526?OpenDocument
Just announce result on 5may, today insiders are buying the share after the curfew period!!!!!
shorted at 46.5 today...looks weak on chart and expect to drop below 40 when mkt crashes! :)
I read somewhere that even grad cannoot find a job in china, n they have to go sell pork.. so maybe short term dw.. haha
Seems like the selling pressure is still there. Keep on digging out the seller.
Time to bounce back very soon. 888
must be something happening .... the price keep dropping !! could be another infomatic ??
it should be able to go to .5 to .6 then stablizing for the next charge. you can go in at .46 or if you want to be extra safe then you can wait for the stablizing rates....
Whether it goes up or down after the support level will depends on the H1N1 and the general economy. Both factors affect the future of the charge
Good luck
I see their 9M profit not very good, can drop further?
I Q at 0.465 888