Thursday, May 14, 2009

Tasco's top-line & bottom-line plunged in 1Q2009

Tasco has just announced its results for 1Q2009 ended 31/3/2009. Its net profit dropped by 90% q-o-q or 86% y-o-y to RM389k while turnover dropped by 44% q-o-q or 34% y-o-y to RM53 million. The poorer performance is attributable to lower turnover from both its International & Domestic Business Solution divisions whish were badly affected by the global slowdown in the past few months.



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).
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6 comments:

  1. ACThursday, May 14, 2009 1:47:00 PM

    Mr. Alex Lu,

    What is the full name of this company? I can't find it in bursa site.

    ReplyDelete
  2. ACThursday, May 14, 2009 2:00:00 PM

    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.

    ReplyDelete
  3. Alex LuThursday, May 14, 2009 2:36:00 PM

    This comment has been removed by the author.

    ReplyDelete
  4. Alex LuThursday, May 14, 2009 2:47:00 PM

    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

    ReplyDelete
  5. ACThursday, May 14, 2009 4:49:00 PM

    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

    ReplyDelete
  6. Alex LuThursday, May 14, 2009 5:52:00 PM

    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.

    ReplyDelete