Thursday, January 6, 2011

Raffles Education

Raffles Education: +3.6% at $0.29 among top volume, extending yday’s 7.8% gain. We note the volume breakout despite virtually no recent news flow on the co.
Meanwhile, the Street has also been quiet. The latest updates were in Nov ’10, with the majority being Hold calls with targets ranging $0.25-0.33. Recall there were concerns regarding the downward trend in student enrollment numbers…

Looking at the technicals, the stock may have bottomed out in late Dec at 0.235. Indicators suggest positive price momentum in the near term, hence stock could be a potential breakout candidate if it can close above the $0.30 resistance (coincides with the 200MA).

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