FLOWS;
BUYS: MAS, Maybank, Sime
SELLS: GentM, Axiata, DRBHcm
Technical Stock Alert;
Hibiscus (RM1.56)
- Stock has retraced back to initial support of RM1.55 after reaching a record high of RM1.94 on the 14 Feb. We expect interest to return ahead of an EGM set on Mar 21 for shareholders to approve the acquisition of 35% Lime Petroleum Plc for USD55m . Lime has exposure to 3 O&G concessions with the possibility of an additional one in the Middle East. BOW
LDHB (RM0.36)
- The price has been on a rising trend since early Oct 2011, when it bounce from a low of RM0.20 before testing a high of RM0.415 on several occasions. It is currently trading on its support line and should see a rebound back above RM0.40.Any significant dip below the RM0.34 levels would signal a trend reversal and thus we also set a stop loss level at RM0.32.
Stock of the Day;
BOUSTEAD (RM5.31)
- Cheapest plantation based conglomerate trading at only 8.8x PE.
- Plantations continue to represent its core earnings but growth is expected from all other divisions including Property development, Financials, Pharmaceuticals, Manufacturing/Services and especially Heavy Industries which recently secured a RM9bn contract to build the 2nd batch of patrol vessels for the Malaysian Navy.
- Based on its formal 70% dividend payout policy, it continues to offer an attractive yield of 6.5%.
- Its price recently touched a year high of RM5.77 before pulling back to current levels of around RM5.30. This presents a good opportunity to accumulate with an strong buy call if the price dips closer to the RM5.00 levels.