Friday, August 10, 2012

TDM Disappoints

For the quarter ended June 30, 2012, TDM's worse-than-expected result is a cause for concern. EPS for the quarter was 3.88 sen. This compares dismally with the result of corresponding period of the previous year. EPS then was 13.86 sen.
In spite of the bad result, TDM is optimistic for the whole year. Its commentary on prospects reads as follows:

"Based on the prevailing CPO and PK prices, the outlook for the financial year ending 31.12.12 remains favorable. Baring unforeseen circumstances, the Group is expected to continue to record satisfactory performance in the current financial year."

I wonder whether TDM is speaking what's on its mind. Maybe it was trying to soothe the frustration of the shareholders. Or maybe it was trying to prevent a free fall of the stock. Anyway the stock slumped 33 sen and closed at 3.96 at the close of trading this morning. 

So, is it a good time to buy the stock now? I believe more downside is on the card. My prediction is that it will hit below 3.70. 

Please have your own prediction. And please remember that you always buy, sell or hold at your own risk absolutely.