Monday, February 27, 2012

TDM, a Potential Gold Mine

A revaluation exercise of certain assets of TDM has resulted in a surplus of RM286.7m for the group. This means that its NTA per share has ballooned to RM4.93 from RM3.22 a year ago. Its latest quarterly result of 18.69 sen per share is better than anticipated. Its full year result of 66.32 sen per share when compared to its previous year result of 40.66 sen per share is commendable.

The group which is now focused in plantations and hospitals has lots of growth going forward. Its cash and cash equivalents as at 31.12.11 stands at RM224,424,000. As at 31.12.10, it was only RM176,100,000. The group is cash-rich and asset-rich as well.

Hold on to your shares for more upside. A bonus with a split is a likely scenario as the group is under immense pressure to be more liquid.