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Saturday, August 25, 2012

TAKASO - A Promising Start

TAKASO Resources Berhad hit its highest price today, closing at 21.5c. Could this be the start of a short term rally?. Possibly so, since it just completed a private placement 13,522,000 new shares at 25c each in early August.

In order to paint a clearer picture, let us take a look at the recent financials for the period ending 30/4/2012 (9 months accumulated) in comparison with the preceeding year 2011.

Revenue 2011  :  13.19 million
Revenue 2012  :  24.74 million
My Opinion : This is very impressive as the company registered a revenue increased of 87%

Net Asset Per Share 2011  :  27c
Net Asset Per Share 2012  :  30c
My Opinion : Inline with the increased in revenue, the net asset per share had also increased from 27c to o30c. At the current stock price level of 21.5c, the company is still trading below its net asset per share.

Current Asset 2011  :  27.83 million
Current Asset 2012  :  41.86 million
My Opinion : This shows a healthy business growth. The 2 main factors attributed to the increase in Current Asset arises from an increase in Sales (with receivables increase from 4.04 to 17.67 million) and its Cash position (0.62 million to 17 million).

Current Liabilities 2011  :  16.70 million
Current Liabilities 2012  :  14.81 million
My Opinion : Looks healthy as there is also a slight decrease in liabilities arising from payment of short term borrowings and settlement of some trade payables.

From the financials, it seems that the company is preparing itself to move to the next level of growth. I would not be surprised if the stock moves up to trade within the range of 25c to 28c within the next 2 weeks. I predict that it will test a strong resistance at 30c level. If the company can deliver a good Q4 financial, then we might see the share price testing 40c.

Bear in mind that the stock had touch a high of 70c in August 2011 (one year ago). It is in everyone's mind and anyone's guesses whether it will break last year's high. For all you believers out there, keep your fingers crossed and hold on to your stocks. Do bear in mind that the stock also drastically touch its lowest point (11.5c) less than 2 months later after hitting its high last year. So, this play is considered highly volatile. The timing of entry and exit is crucial. The stock had been trending down since February 2012. Saying so, i do believe that a rebound is pretty likely to happen.