Raffles Education (E6D.SG) +5.5% at $0.290 with over 45 million shares changing hands, extending yesterday’s 7.8% rise, also on increased volume.

Kim Eng Securities says the company recently caught its attention because of the significant number of directors increasing their shareholding and company share buy-backs over 2010. 

“What gives us the most confidence is the similar pattern of share buy-backs and open market purchase of shares that Osim (O23.SG) had before its share price rallied” at end-2010 leading to the announcement of a TDR-listing. 

 

Raffles CEO purchased 12.5 million shares in mid-2010 at an average cost of $0.281; “this should offer some support for the stock price at this level, but also boost confidence that the CEO of the company recognises the value of his company and perhaps something good is brewing in the horizon.” 

 

September’s $0.31 high may cap near term.