FLOWS;
BUYS: Benalec, Genting, PChem
SELLS: KNM, Maybank, WCT
Technical Stock Alert;
Genting Msia (RM3.81) - Hit immediate 5mth support levels of RM3.80 after sell off yesterday in reaction to disappointing new on its bid for a Florida casino lic. Minimal downside as we don't think its strong support level of RM3.72 (SMA 200) will be breached. Accumulate.
GLOMAC (RM0.86) - Rotational play into property counters has seen volume return to the market laggards. Price has been creeping up off its support of RM0.82 with an immediate resistance of RM0.90 and short term target of RM1.06. A privatization possibility with the stock trading only at 0.38x Pr/bk.
Stock of the Day
Faber - (RM1.75)
- Price recently has been bogged down by litigation issue relating to Middle East projects and the delay in renewal of its hospital support services concession.
- The initial 15 year hospital support services concession expired last year and was extended temporarily for 6 months to April 2012 pending a decision. This service contributes on average an EBITA of RM70m-RM80m.
- We believe that the concession will be re awarded to Faber's subsidiary Faber Medi Serve, probably on revised terms.
- The clinching of this long term concession should prove to be a major re rating catalyst for the company back to it two year average of RM2.20. BUY
