Chartwise, we can see that Tasco's share price has just broken above its medium-term downtrend line at the RM0.70 level last month. With the poorer results for 1Q2009, Tasco's share price may drift back to re-test its downtrend line. I believe the RM0.70 support level should hold due to Tasco's cheap valuation & signs of recovery in the economy which would benefit Tasco's business.
Chart: Tasco's daily chart as at 13/5/2009 (Source: Quickcharts)
In conclusion, Tasco remained a good stock for long-term investment. Good entry level is at RM0.70.
PS- Check out my earlier post of Tasco (here).
6 comments:
Mr. Alex Lu,
What is the full name of this company? I can't find it in bursa site.
Forgive me for asking such simple or silly question...even I have been 'playing shares' for more than 15 yrs. Some listed companies are just kept on changing name or restructuring, till I lost track of their real identity.
Hi AC,
TASCO is short for Trans-Asia Shipping Corp Bhd. I have posted on this company on April 2 (see the link below). The price has inched up slightly from RM0.615 then to RM0.76 yesterday- unlikely the rest of the cheap shares which have flown skyward during that period.
This can be a bit frustrating at times. Some investors are starting to throw caution to the wind, by joining the "dash for trash". Past experience has shown that this can end badly.
http://nexttrade.blogspot.com/2009/04/tasco-attractive-buy.html
Alex Lu,
I thought that freighters and shipping companies are suffering biggest impact due the world trade nose-dive, and expected will not be recovered soon. I have an article in my blog - http://www.blogvest.blogspot.com/2009/05/too-many-of-empty-ships-as-world-trade.html
Hi AC,
What you have noted is true for the 1st quarter. Since then, inventory replenishment has kicked in and most import & export have recovered somewhat. I believe the 1st quarter was the bottom for Tasco & going forward, it should report profit numbers of about 60-70% of last year's numbers.
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