It was almost end of October, 2002, when I bought the book “One Up On Wall Street” and learned the term of “Tenbagger” which was created by Peter Lynch, the author of the book. I said to myself, “Woo, that’s wonderful.” And then forgot about it.
It was in March 2004, when I noticed a Singapore listed company named “Raffles LaSalle Limited” (The name was changed into “Raffles Education” later), which specialized in creative design education. The Company owned and operated a network of private technical schools that focuses on creative design like fashion, interior, graphic, product and multimedia design with supporting business administration and language classes. The Company had ten schools in Asia with six in China and one each in Singapore, Malaysia, Australia and Thailand. The Company also planned to double the number of schools it operates by 2006 with much of the expansion in China.
Its financial figures were perfect with growth of revenue at 56.7% in the latest half year report and profit growth at 139% respectively. Its ROE were over 40% with no debt. With such high growth, it even gave a dividend with 2% yield in the latest financial year! The operation cash flow was healthy and capital expenditure was about 20% of free cash flow. The stock is not cheap with PE around 50.
Continue reading “My First Tenbagger”