MORNING CALL 14 JUNE
2012
FLOWS;
BUYS: Dialog,
Maybank, JCY
SELLS: TNB,
UEMLand, Digi
Technical Stock Alert;
1) BUMI ARMADA
(RM4.05) - The stock has continued to recover from its recent low of RM3.82 after our initial call on 22
May. Technical indicators continue to show strength with the price now trading
above its 200 SMA levels of RM4.00 and looks immediately to test 50 SMA of
RM4.15. RSI remains neutral at 51 while MACD continues to trend higher. Sell off from April's placement of 293m shares @ RM3.95
to institutional investors looks to over with the rerating catalyst of securing
at least one new FPSO contract in the next quarter likely to materialise. We
reaffirm our BUY call with a higher target of RM4.30.
2) Gamuda
(RM3.46) - Price fell from a high of 3.94 to a low of 3.30 on the back of worries ahead of the GE which may
jeopardize the award of certain contracts. We feel these concerns are all
priced in and could see a continued rebound ahead of the awarding of more MRT
packages by July. Other than the MRT, Gamuda's earnings will come from the
southern electric double tracking project (EDTP) worth that will be completed
by end of 2014. Current orderbook is 5.8bil with a strong possibility of adding
to it from ETP related infrastructure projects.
Technical chart shows that selling has thinned out and there has been
support above the RM3.40 levels. RSI is slightly above 50 and MACD has cut
up. Immediate target upside of RM3.60 and RM3.80. Trading BUY
(RL/DN)
