FLOWS;
BUYS: PBBank, CIMB, Sime, MRCB
SELLS: IOIC, Maxis, IJM
Technical Stock Alert;
MPHB (RM2.87) - Signs of weakening MACD indicating current levels unsustainable as the price has risen from a recent low of RM2.70 to a high of RM2.96. Current trend likely to see price revisit initial support of RM2.70.
TM (RM5.03) - Current attempt to break its record high of RM5.09 looks likely to succeed with an immediate target of around RM5.20. The current interest is stirred by building expectations of a special dividend to be declared when it announces its full year results. A push towards and above our target of RM5.20 would represent an opportunity to sell into strength as the stock remains one of the most expensive telcos in terms of PEs and expectations of built up in competition from fix line broadband offerings after last year wholesale bundling to other players.
Stock of the Day;
UOADEV (RM1.45)
- Share price has retraced 61.8% from its recent high of
RM1.60. Current price appears attractive as they are trading at 6.5xPE and 1XBV and sharply below its IPO price in June last year of RM2.52.
- Company has a dividend policy of 30-50% of operating profit.
Based on consensus estimates of 22sen, company could be paying dividend as high as 11sen giving a yield of 7.5%. Buy with immediate target price of RM1.60.
