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FLOWS
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Friday, 7 November, 2014
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BUY
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SKPETRO, GENM, AXIATA
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SELL
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CIMB, SUPERMX, IHH
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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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KPS (5843)
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7/11/2014
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RM1.75
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Take Profit
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RM1.58
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rebounded
>20% from RM1.45 on technical bounce & report of an additional RM3b
injection by the Federal govt to assist the state govt to resolve the water
concessionaires takeover stalemate. However today, the water ministry has
clarified that there is no additional RM3b to resolve the water issues.
Hence, the bid for SPLASH (KPS has 30% stake) remained unchanged for the time
being & will not be accepted by its owners. Applying a fair 20% discount
for holding co status & lack of visibility in earnings to KPS book value
of RM2.27 would derive a fair value at RM1.82. Given KPS fine run & its
fair value, we would encourage a take profit into strength. (PT)
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SKPETRO (5218)
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7/11/2014
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RM3.14
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BUY
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RM3.75
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the
current price level is very near to its important technical support of RM3.06 - the 61.8% retracement of its rally
since the listing of its merged entity at RM1.90 to a high of RM4.93. The
current down leg is the final downward move (5th wave) of its correction from
RM4.78 - a favourable risk: reward levels to accumulate the stock. SKPetro is
also very oversold with daily rsi of 27 & weekly rsi of 24. It is trading
at attractive valuations with forward FY1/16 PER of 11.4x. Brent & WTI
crude have also similar chart patterns, being severely oversold & in the
final leg of their corrections. With the easy consensus downward one-sided
trades on crude oil recently, one could expect a lot of shorts are in place
on crude oil. Hence, it would not be surprising if any positive news generate
a strong rebound. OPEC has lowered their production target by 1.8m barrels for
next year in their Annual Global Outlook last night. Does this mean that the
OPEC meeting on Nov 27 will see some action? OPEC weaker countries like
Venezuela, Libya, Iraq, Iran & Nigeria are facing severe fiscal &
current a/c problems with oil at this level. If there is nothing done, there
is a possibility that emerging mkts debts will be under pressure again &
other emerging mkts asset classes will be hit when losses need to be covered
no matter where one hides now. Hence, SKPetro is a good calculated bet on
action being taken at some point soon. (PT)
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Calls for OCT WEEK 4 / NOV
WEEK 1 2014
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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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VITROX (0097)
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30/10/2014
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RM2.42
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ACCUMULATE
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RM2.80
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RM2.63
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+8.7%
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MAYBULK (5077)
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30/10/2014
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RM1.48
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ACCUMULATE
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RM1.75
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RM1.52
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+2.7%
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PANTECH (5125)
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31/10/2014
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RM0.97
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ACCUMULATE
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RM1.18
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RM0.965
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-0.5%
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AIRPORT (5014)
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31/10/2014
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RM7.26
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TRIM
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RM6.60
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RM7.06
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-2.8%
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SALCON (8567)
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3/11/2014
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RM0.74
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TRADING BUY
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RM0.82
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RM0.75
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+1.3%
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GTRONIC (7022)
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3/11/2014
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RM4.52
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TRADING BUY
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RM4.99
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RM4.60
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+1.8%
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SOP (5126)
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4/11/2014
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RM5.75
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ACCUMULATE
on weakness
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RM6.20
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RM5.71
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-0.7%
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MMCCORP (2194)
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4/11/2014
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RM2.58
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BUY
– closer to RM2.30
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RM2.80
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RM2.50
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-3.1%
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PARKSON (5657)
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5/11/2014
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RM2.52
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BUY
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RM3.10
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RM2.52
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+0.00%
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SIME (4197)
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5/11/2014
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RM9.68
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BUY
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RM10.50
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RM9.72
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+0.4%
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Performance
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Positive
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Negative
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Neutral
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