Morning Call | 3 Dec 2012

FLOWS

Monday, 3 December 2012

BUY

CIMB, SUPERMX, YTL

SELL

DIALOG, IOIC, PCHEM

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

MISC (3186)

3/12/2012

RM4.02

Mid Term BUY

RM4.48

MISC (RM4.02) – price has drifted down back to its lower end of its consolidation range of between RM4.00-RM4.50. The current weakness can partially be attributed to the larger than expected loss in its winding down ops of the linear business and also weak performance of MMHE. On a positive note its 2 floating storage units are already contributing positively in its 3Q numbers and no further provisions are expected for the FPSO Cendor project. Its parent company Petronas is awaiting a response from Canadian officials over the proposed acquisition of Progress Energy due around Dec 10, which could provide long term +ve prospects for MISC. Good levels to accumulate for a medium term recovery story. Short term resistance RM4.48.

OSK (5053)

3/12/2012

RM1.39

ACCUMULATE

RM1.71

OSK (RM1.44 EX 5 Sens) – Stock has been trading at a comfortable range of 1.37 – 1.54 since announcing its merger between OSK – RHB in May.  The merger sees OSK disposing 100% of its investment bank bhd (including 100% of its Labuan arm), 20% of its OSK trustees leaving OSK with little to none core business, cash RM208 mil with 10% stake of RHBCap. With no commitments left, OSK group CEO hinted that they might pay 60-70% of its profit as dividend next year vs its 30+% currently (4%). Price chart forming a higher high, higher low indicating an uptrend, currently trading at the bottom of the Bollinger band, MACD touched the baseline and is poised for a rebound, Stochastics have yet to trigger a buy, RSI almost at an oversold level. Downside of stock seems limited at this point. Accumulate. (RL)

Calls for Week 4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

WCT (9679)

26/11/2012

RM2.72

Accumulate

RM2.96

RM2.75

+1.1%

AIRPORT (5014)

26/11/2012

RM5.48

Trading BUY

RM5.70

RM5.31

-3.2%

GLOMAC(5020)

27/11/2012

RM0.815

BUY on weakness

RM1.00

RM0.805

-1.2%

BENALEC (5190)

27/11/2012

RM1.29

BUY on weakness

RM1.60

RM1.30

-0.8%

SUNREIT (5167)

28/11/2012

RM1.46

Accumulate

RM1.60

RM1.46

0.0%

PADINI (7052)

28/11/2012

RM1.85

SELL

RM1.60

RM1.75

-5.7%

SPSETIA (8664)

29/11/2012

RM3.05

Accumulate

RM3.40

RM3.04

+0.03%

KULIM (2003)

29/11/2012

RM4.28

BUY

RM4.70

RM4.36

+1.8%

KPJ (5878)

30/11/2012

RM5.80

BUY on weakness

RM6.20

RM5.90

+1.7%

LIONIND (4235)

30/11/2012

RM0.91

BUY

RM1.15

RM0.915

+0.05%