Assuming you are a fundamentalist; and you are looking for some good dividends with some upside in capital gains,TASCO can be an even bet.
Let us look at the trend of the share prices of this Japanese-based logistic company for the last year or so.
The lowest price was in the mid RM1.30's. It moved steadily up towards the RM1.40s and RM1.50s before spiking up 14 sen to RM1.60 on 31 March 2011 on a huge volume of 1.147 million shares. Subsequently, it slid back in the RM1.40-RM 1.50 level in June and July.
In August, there was again a mini spike raising the price to RM1.73. Then, it went south. The nadir price of RM1.36 was reached in September. By November,buying interest came back once more with the price inching back to the RM1.60 level.
In January 2012,prices steadied and by early February began moving upwards again touching the RM1.70-RM1.75 level by 15 February.
Buying volume has been steady and there seems to be no rush to sell as sellers sell into strength.
Let us look at the price movement.
The last dividend paid was an effective 8%. At the current price of RM1.73, you would need to pay RM1,730 for one lot of this share.So, the nominal return is RM80.00 annually. The same amount of return at a bank savings rate at 0.2 is only RM3.46. The differential return of RM80.00 is 23 times more than what you get from a savings account return.
Tasco paid a dividend of an effective 6.25% in 2009.
Tasco closed up 5 sen to a new high of RM1.78 this evening. Volume was fair at 1,460 lots of 100 units.
We will look at the potential and vagaries of this company in another post.
