TDM is likely to open higher when the market opens for trading tomorrow morning.
The 3rd Qtr result shows EPS of 12.82 sen. For the 9 months ended 30.9.10, the EPS is 27.48. This compares favorably with the same period of the preceding year of 15.29 sen. This better result is achieved because of higher fruit production and higher CPO prices by 7% and 13% respectively.
In the hospital division, the number of patients increased by 5%. The brings about an improvement in revenue and profit by 16% and 38% respectively.
The torn in the flesh continues to be in the poultry industry. Weak demand for processed chickens weakened prices. The sector lost 0.4m for the 9 months. (The company should switch this sector to swiftlet farming.)
Looking ahead, I expect better days for TDM. For the month of October, 2010, fresh fruit productions have increased to 62,127 metric tons from 54,109 in September. This upward trend of fruit production coupled with good CPO prices which are expected to be maintained should result in TDM having an excellent year. My estimated EPS for TDM is about 42 sen per share.
As at 30.9.10, its cash position is extremely strong at RM121,971,000. I am expecting it to pay a dividend of not less than 15 sen per share for the financial year of 2010.
At the last traded price of RM2.43, there is upside potential for TDM. Hold on to your stock unless you have a better stock to switch to.
As usual, you buy, sell, or hold at your own risk absolutely.
Have a great day!