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FLOWS
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Tuesday, 29 October, 2013
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BUY
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MRCB, TM, UOADEV
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SELL
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ARMADA, GENTING, CRESBLD
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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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MAGNUM (3859)
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29/10/2013
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RM3.31
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Trading BUY
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RM3.60
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We are calling a trading buy on the stock’s
break out from its 2-month hibernation as it has cleared its resistance of
RM3.30 on relatively high volume. The MACD also has a buy signal with a
positive crossover and is on the verge of rising above the zero line
indicating a strong likelihood of continuation of the current upward trend.
This strength is facilitated by the absence of hikes in gaming taxes and pool
betting duty during the 2014 Budget which was earlier rumoured to be a strong
possibility in view of the country’s challenging fiscal dilemma of maintaining
growth in the face of a deteriorating budget deficit, coupled with threats of
credit rating downgrade from the international rating agencies. Magnum trades
at a forward PER of 13.8x & dividend yield of 5.6% which is more
attractive than current market forward PER of 17x & dividend yield of
3.2%. In addition, 2H13 should see better results with the uncertainty of the
elections over, the reversal of the exceptionally bad luck factor in Q2 and
the higher sales from the implementation of minimum wage from 1H13. Its
latest balance sheet has the propensity to surprise with a special dividend
as it has cash of RM1.4b or RM1.00/share.
(PT)
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KPJ (5878)
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29/10/2013
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RM6.15
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ACCUMULATE
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RM6.80
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with GLC-related major shareholders of Johor
Corp, EPF, LUTH & Kumpulan Waqar An-Nur controlling close to 72% of the
paid-up capital, KPJ is a potential candidate for year-end window dressing
activities. Over the last 3 years, the stock recorded average returns of 8%
for the last quarter. KPJ has been consolidating in a declining wedge pattern
for the last 2 months with a potential uptick from the candlestick charts.
Possible catalysts for KPJ would come from the government approval for the
increase in medical fees. The last revision was made in 2008, and on the average,
there is a fee revision every 5-6 years, hence the next revision is due in
2013/14. While KPJ sees organic growth annually, FY14 should also begin to
see revenue contributions from hospital openings of the last 2 years.
Accumulate
(PT)
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Calls for OCT 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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WEIDA (7111)
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22/10/2013
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RM1.74
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BUY
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RM2.45
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RM1.78
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+2.2%
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WCT(9679)
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22/10/2013
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RM2.45
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BUY
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RM3.08
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RM2.44
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-0.5%
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MAXIS (6012)
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23/10/2013
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RM7.21
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TAKE PROFIT
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RM6.70
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RM7.19
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-0.3%
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KULIM (2003)
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23/10/2013
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RM3.27
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ACCUMULATE
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RM3.80
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RM3.32
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+1.5%
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ENGTEX(5056)
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24/10/2013
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RM1.60
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BUY on weakness
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RM2.00
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RM1.75
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+9.3%
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FAVCO (7229)
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24/10/2013
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RM2.79
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ACCUMULATE
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RM3.60
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RM2.91
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+4.3%
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BRAHIMS (9474)
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25/10/2013
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RM1.50
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BUY
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RM2.04
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RM1.49
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-0.7%
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GLOMAC(5020)
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25/10/2013
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RM1.19
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Trading BUY
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RM1.45
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RM1.16
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-2.6%
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KEURO(3565)
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28/10/2013
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RM1.26
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ACCUMULATE
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RM1.58
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RM1.27
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+0.7%
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CARLSBG(2836)
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28/10/2013
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RM12.46
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Trading BUY
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RM15.00
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RM12.72
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+2.0%
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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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