TA's first quarter earnings is quite commendable. At 3.37 sen, it is an improvement of 70% over the corresponding period last year. Its annualized earnings per share comes up to 13.48 sen. Assuming a PE of 10, TA should be worth around RM 1.35 per share. Just sit back and wait for TA to surge tomorrow. What's more, TA will trade ex-dividend tomorrow.
Understand that TA posted a good results. However, we can't too optimistic as i believe some traders(maybe some of you) may sell it to take profit & dividend. Otherwise, many of you will feel disappointed. If can break the recent 3 months high at 0.87, then what i want to say "see you at RM1.00".
while the result is good, you need to account for one time gain on debt recovery:
(from TAGlobal 2014 first quarter report) For the current first quarter, finance and related services division reported profit before tax of RM35.4 million as compared to profit before tax of RM10.4 million in the previous year’s corresponding quarter. The increase in profit before tax was mainly due to the significant loan recovery from financial receivables.
Those who are already in possession of TA shares and sell tomorrow would be entitled to the 2.8 sen dividend. Of course those who buy tomorrow won't be entitled to the dividend.
TA closed at 86 sen yesterday. After adjusting for 2.8 sen dividend which goes ex today, TA's closing price yesterday was 86-2.8 or 83.2 sen and was rounded down to 83 sen. TA opened at 85.5 sen this morning.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
lawrance27
21 posts
Posted by lawrance27 > 2014-06-27 11:38 | Report Abuse
how you know it will a poor result?