Dear kcchongnz, what's yr target exit price? Plse share. I bought this counter long time ago around RM1.40 due to its low PE and Tan Sri Azman Hashim as one of the main shareholders besides japanese investors.
Discount Cash Flow Analysis Valuation on TASCO 8/14/2014
Table 6.1: Assumptions Current stock price $3.62 Share outstanding (Mil) 100,000 This year FCF (Avg last 3 years) $22,122 Next year's FCF (mil) $23,891 Growth for the next 5 and 10 years 8.0% 5% Teminal growth rate, g 3.00% Discount rate, R 10.0%
Table 6.2: DCFA PV of FCFF of core operations $428,000 Non-operating cash $22,600 Fixed deposits with licenced banks $29,861 Investment in Associates $4,183 Debts ($24,165) PV of FCFE $460,479 Less minority interest ($14) FCFE $460,465 Number of shares 100000 FCF per share $4.60 MOS 21%
Intrinsic Value of TASCO is RM4.60, potential gain of 27%
Using a Reverse engineering DCF calculation shows that at the current price, the market is expecting 3% growth in TASCO free cashflow for the rest of its life. So, What do you think?
Coverage on Tasco by The Edge Weekly dated 13/4/2015. The key takeaway from this article are that Tasco is on an expansion mode, rolling out RM100mil capex to meet demands. It benefits from the networks of its Parent Company Nippon Yusen Kabushiki Kaisha (NYK Group). Bustling electronic exports bode well for logistic businesses. A prolonged "low oil price regime" increases its profit margin.
Tasco's Share Capital is RM100mil, and the retained profits is RM195mil. This stock is highly illiquid. Time to reward loyal shareholders a bonus for 2 shares held?
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....
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Posted by wwwcomment > 2014-08-12 10:07 | Report Abuse
Wow. Shoot up after mr chong recommend