Morning Call | 26 March 2013

FLOWS

Tuesday, 26 March 2013

BUY

CIMB, PBB, YTL

SELL

DIALOG, IOIC, MAYBANK

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

TM(4863)

26/3/2013

RM5.30

ACCUMULATE

RM5.80

Laggard to yesterday’s outperforming Digi and Axiata. Co also has the potential to pay a special div as is sitting on healthy cash pile of RM2.7bn with declining capex trend this year. Yesterday saw TM cutting above the 10D SMA line with RSI at a neutral 47. Trades at PER’13 15x, yield 3.7%-accumulate for bounce back to RM5.80. (LJN)

AFG(2488)

26/3/2012

RM4.33

Trading BUY

RM5.20

Recent announcements of co selling off 30% Takaful for RM45m cash and 70% Alliance Investment earlier may be prelude to emergence of possible new s/h in co as its current s/h Vertical Theme (29%) is known to be keen to dispose of stake-earlier speculation to DBS Bank. Technically on verge of a breakout as it tests the recent high of RM4.38 supported by its 50D SMA of RM4.22. Trades at attractive P:B 1.6x, ROE 13.6%-trading buy for target of RM5.20 based on 2.0x p/b. (LJN)

Calls for MARCH Week 3/Week 4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

ARMADA(5210)

19/3/2013

RM3.72

ACCUMULATE

RM4.00

RM3.75

+0.8%

SUNWAY(5211)

19/3/2013

RM2.73

Take Profit

Buyback RM2.50

RM2.78

+1.8%

PAVREIT(5212)

20/3/2013

RM1.58

SELL

RM1.45

RM1.60

+1.2%

CARLSBG(2836)

20/3/2013

RM14.06

SELL

RM12.50-13.00

RM13.94

-0.9%

PENERGY(5133)

21/3/2013

RM1.26

BUY

RM1.47

RM1.27

+0.7%

MULPHA(3905)

21/3/2013

RM0.405

Trading BUY

RM0.50

RM0.405

0.0%

KOSSAN(7153)

22/3/2013

RM3.47

BUY

RM3.94

RM3.46

-0.3%

UMW(4588)

22/3/2013

RM13.22

Trading SELL

RM12.20

RM13.08

-1.0%

DIGI (6947)

25/3/2013

RM4.42

ACCUMULATE

RM4.80

RM4.53

+2.4%

FAVCO(7229)

25/3/2013

RM1.75

Trading SELL

RM1.56-1.60

RM1.75

0.0%