Toshiba Machine Molds A Good Future

This week my Safari portfolio seeks a company in the industrials sector.

That sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing a diversified industrials company named Toshiba Machine Co. LTD. It's trading ticker symbol is TSHMY. 

Toshiba Machine Co. LTD. manufactures and sells industrial machinery and equipment. Their products include Molding Machines, Machine Tools, and Hydraulic Equipment.

Shibaura Engineering Works Co., the forerunner of the Toshiba corporation was established in 1875. Toshiba Machine Co. LTD recently separated fromToshiba Corp., as their parent company and top shareholder. 

Toshiba Machine Co. LTD. is headquartered in Tokyo, Japan. Their North American headquarters is in Elk Grove, IL

I use three primary keys to gauge dividend equities or funds like Toshiba Machine (TSHMY ): 

(1) Price

(2) Dividends

(3) Returns

After those three, I'll use four more keys to unlock an equity or fund in which to invest.

Those three primary keys, however, best tell whether a company has made, is making, and will make money. 

TSHMY Price

Toshiba Machine's price at yesterday's market close was $27.41 per share.  A year ago its price was $12.89. So it gained  $14.52 per share in the past year.  If TSHMY does as well this year its share price will increase from $27.41 to $41.93, or about 53%.

That's an amazing increase, half that well would be fine. Say $7.26 growth instead of $14.52 would bring share price from $27.41 to $34.67 for a 26.5% increase.

TSHMY Dividends

Toshiba Machine's most recent quarterly dividend was $0.2478 declared September 22nd, and paid December 19th.  

The annual dividend for 2018 is estimated to be $1.00 payable quarterly in March, June, September and December.

The yield from that $1.00 annual dividend was almost 3.64% at yesterday's $27.42 price.

Gains For TSHMY?

Adding the $1.00 dividend to the hypothetical $7.26 estimated year over year price gain, shows a potential $8.26 gross gain for the coming year.  

Subtract the cost to trade Toshiba Machine's (TSHMY ) shares: A  $1,000.00 investment at yesterday's $27.42 price bought 36 shares. 

Those 36 shares get hit with broker fees of $5 at purchase and another $5 at sale for a per share cost of about $0.28 per share

Subtract that $0.28 brokerage cost from the estimated $8.26 gross gain leaves a net gain to 2019 of $7.98

X 36 shares 

= $287.28

or a 29% net gain on a $987.12 investment.

Therefore, Toshiba Machine Co. LTD (whose ticker symbol is TSHMY), now shows a possible 29% gain by my simple downsized year over year calculation with a 3.6% dividend included. 

No analysts cover this stock and the only price chart I saw showed two years of steady price gains.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far lower. More study is required for you to determine if Toshiba Machine Co. LTD (TSHMY ) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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