FLOWS
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Tuesday, 23 October, 2012
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BUY
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GENTING,
TM, PERDANA
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SELL
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TNB,
SIME, AXIATA
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Stock
Alert
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STOCK
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DATE
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PRICE
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BUY/SELL
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TARGET PRICE
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ARMADA (5210)
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23/10/2012
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RM3.70
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BUY
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RM4.20
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ARMADA (RM3.70) – we are revisiting Armada as we feel after
a long consolidation over the past four months that have tested investors
patience, the timing is now right for a possible move above its immediate
resistance level of RM3.75 which coincides with its SMA 50 levels. FPSO
contracts which are the bread and butter of the company’s business could
finally start to flow with a strong chance of securing ONGC (India)
requirement for Cluster 7. It is also well positioned to capitalize on
Petronas Carigali’s invitation to bid for the supply of 34 vessels valued at
RM3.2bn as Armada has the largest fleet of 46 vessels with an additional four
on order with an option for another four more. Buy with a RM4.20 target
price.
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PMETAL (8869)
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23/10/2012
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RM1.75
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Trading Buy
|
RM1.91
|
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PMetal(RM1.75) – to position for the commercial
launch of their Phase 2 expansion plans from Q4 2012, whereby the capacity of
the plant will triple to 360,000 tonnes when it is fully commissioned next
year. Pmetal is only one of two aluminum smelters operating within the
growing Asean market, hence there is little fear of excess capacity. With
this expansion, PER will drop from current FY12’s 9.7x to 7.3x in FY13
and 5.4x in FY14 despite a CAGR of 23% for the next 2-3 years. In
addition, there is a potential M&A play with foreign investors taking a
stake in the new plant , including Japan’s global player, Sumitomo which
already has a 20% stake in Phase 1. Recently, one of the major shareholder
cum director exercised 2.6m warrants (with an expiry date only in August
2019) @ RM2.20. This certainly adds credence to the stock. Technically, the
stock has also bottomed with positive divergences on their daily charts.
(PT)
 |
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Calls
for OCT Week 3 / Week 4
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STOCK
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Initiation Dates
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change since Initiated
|
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DRBHICOM (1619)
|
16/10/2012
|
RM2.38
|
Trading BUY
|
RM2.60
|
RM2.37
|
0.4%
|
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SILKHLD (5078)
|
16/10/2012
|
RM0.35
|
Trading BUY
|
RM0.41
|
RM0.365
|
4.2%
|
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FITTERS (9318)
|
17/10/2012
|
RM0.685
|
Trading BUY
|
RM0.80
|
RM0.695
|
1.44%
|
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MRCB (1651)
|
17/10/2012
|
RM1.68
|
Accumulate
|
RM1.90
|
RM1.65
|
-1.8%
|
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MAYBULK (5077)
|
18/10/2012
|
RM1.44
|
Trading BUY
|
RM1.60
|
RM1.42
|
-1.4%
|
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PADINI (7052)
|
18/10/2012
|
RM1.89
|
Accumulate
|
RM2.10
|
RM2.04
|
7.4%
|
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LIONIND (4235)
|
19/10/2012
|
RM1.10
|
Strong BUY
|
Mid - RM1.70
|
RM1.10
|
0%
|
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FAVCO (7229)
|
19/10/2012
|
RM1.63
|
Trading BUY
|
RM1.81
|
RM1.63
|
0%
|
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SUNWAY (5211)
|
22/10/2012
|
RM2.32
|
Trading BUY
|
RM2.60
|
RM2.31
|
-0.4%
|
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HAIO (7668)
|
22/10/2012
|
RM2.18
|
BUY
|
RM2.50
|
RM2.25
|
3.2%
|
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Tuesday, October 23, 2012
Morning Call | 23 Oct 2012
