Stock Name: TASCO
Company Name: TASCO BERHAD
Research House: HLG

KUALA LUMPUR: HLG Research said Trans-Asia Shipping Corporation Bhd (TASCO), with its robust earnings during good and bad times, is a good defensive stock.

It said on Monday, Sept 6 that Tasco has an attractive dividend yield, supported by its solid track record and savvy management in delivering performance over the years in a competitive environment.

'TASCO's mid-term uptrend remains firmly intact following the strong breakout above the overhead resistance at RM1.03. However, after surging 23% from RM1.00 to a 52-week high of RM1.23 on Aug 27, TASCO's share price is likely to take a breather and consolidate around the RM1.10 zone before marching to our 6-month technical target of RM1.40,' it said.

HLG Research said TASCO ''is likely to find strong support at the RM1.09 (38.2% FR from high RM1.23 and low of RM1) and RM1.05 (23.6% FR) levels. Cut-loss below RM1.00 as failure to hold at this level will trigger more selling pressure to RM0.90.

'At RM1.14, TASCO is trading at 5.2x annualised FY10 P/E and 0.56x P/B, supported by attractive yield of 6.1%. Our six-month technical target is RM1.40, implying a 6.4x annualised FY10 P/E,' it said.