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FLOWS
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Monday, 26 August, 2013
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BUY
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MRCB,
TM, SUNREIT
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SELL
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ARMADA, GENTING, TOPGLOVE
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STOCK ALERT
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STOCK NAME
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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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BAT (4162)
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26/8/2013
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RM62.30
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Trading SELL
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-
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Stock
is trading above consensus analysts’ 12-month target price of RM60.36 and
with high valuations of trailing PER & p/bk of 22.3x & 36.6x
respectively vis-à-vis its 5-year average of PER 18.5x & p/bk of 27.3x.
10-year MGS has increased more than 80bps over the last 3 months to 3.82%,
reducing the attractiveness of dividend yielding stocks like BAT. The tobacco
sector is also susceptible to a potential hike in excise duty in the coming
budget as excise duty has been stagnant for the last 3 years and the
government is in dire need to reduce its fiscal deficit after the Fitch’s
credit outlook downgrade. In addition, the Health Ministry has hinted of
stricter tobacco regulations which would mean tougher operating conditions
& risk of losing more of its market share to the illicit operators.
Trading sell
(PT/LJN)
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GENM (4715)
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26/8/2013
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RM4.20
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Take Profit
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-
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Stock
has rallied strongly post the announcement of the RM400m redevelopment plan,
extending its ytd gains to 20% versus the KLCI index’s 1.9%. With such
outperformance, Genm would need further catalysts to drive the stock higher.
However, recent market talks have been negative with rumour of a potential 5%
increase in casino tax to 30% and the likely delay of gaming liberalisation
in New York & Miami to next year, hence cubing casino expansion plans. We
advocate to lock in your gains in current difficult markets. Take profit
(PT/LJN)
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Calls for AUGUST Week 3/Week 4
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STOCK
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Initiation Dates
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Initiation price
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BUY/SELL
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TARGET PRICE
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LAST PRICE
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% Change
since Initiated
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NAIM(5073)
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19/8/2013
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RM3.86
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Trading BUY
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-
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RM3.59
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-7.0%
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MHB (5186)
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19/8/2013
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RM4.07
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ACCUMULATE
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-
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RM3.63
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-11.1%
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E&O(3417)
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20/8/2013
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RM2.19
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Trading SELL
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RM2.00
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RM2.05
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-6.4%
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GAMUDA(5398)
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20/8/2013
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RM4.62
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BUY on weakness
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RM5.20
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RM4.34
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-6.1%
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GASMSIA(5209)
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21/8/2013
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RM3.37
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Take Profit
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-
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RM3.30
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-2.1%%
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DIALOG (7277)
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21/8/2013
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RM2.68
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ACCUMULATE
on weakness
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-
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RM2.66
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-0.7%
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CBIP (7076)
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22/8/2013
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RM2.79
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BUY
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RM3.60
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RM2.74
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-1.8%
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WTK(4243)
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22/8/2013
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RM1.33
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ACCUMULATE
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1.74
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RM1.32
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-0.8%
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GAB (3255)
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22/8/2013
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RM18.00
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SELL
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RM16.00
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RM18.10
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-0.5%
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UOADEV(5200)
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23/8/2013
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RM2.24
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ACCUMULATE
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RM2.60
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RM2.22
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-0.9%
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We’ve added
an extra feature (first column from right) to indicate our recommendation for
our call.
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HOLD
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CONT SELL
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SELL/ TAKE PROFIT
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CONT BUY
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STRONG BUY
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