MORNING CALL 6 March 2012
FLOWS;
BUYS: Digi, CIMB, Airasia
SELLS: Sime, MPHB, TimeCom
Technical Stock Alert;
RCE Cap (RM0.50) - Price which came off from its RM0.57 year high has been trending back upwards. RSI currently at 47.9 is turning up with MACD indicating a buy signal with an immediate target of RM0.55. Company has an outstanding proposed 1:2 Bonus issue with 479m RCPS at 2 RCPS : 5 shares (ex bonus) to raise RM150m to repay a bridging loan.
Supermax (RM2.01) - Recent sell from a high of RM2.37 saw the stock hit a low of RM1.97 before the current bounce back to RM2.00 after encouraging remarks from its major shareholder at its results briefing. Expect a consolidation around the RM2.00 levels with any dips to RM1.80 a buying opportunity as an eventual bounce back to RM2.20 in the medium term is seen with the new production line of nitrile gloves coming on stream.
Stock of the Day
UEMLand (RM2.36)
-We are revisiting our earlier call on UEMLand on positive new developments since the company announced their FYE Dec results.
-The company achieved RM301.7m net profits in FYE 2011 and has announced optimistic KPI targets for FYE 2012, comprising of 50% revenue growth, 40% net profit growth and ROE of 10%.
-The 40% growth in profits should see a bottom line of RM423m well above cons(f) of RM335.5m
-The stock is currently threatening to break above its SMA 200 overhead resistance of RM2.38. A decisive breach above should see an immediate target of RM2.60 and eventually RM2.80. BUY
