MORNING CALL 27 April
2012
FLOWS;
BUYS: MRCB,
TM, UOADev
SELLS: BAB,
Genting, Latexx
Technical Stock Alert;
1) DRBHICOM (RM2.36) -
trading down to its SMA 200 day levels of RM2.30 after reaching a year high of RM3.26. To date it
has been successful in increasing its stake in Proton to 98.66% after
announcing a MGO. Re rating catalyst could come from the rationalization
process of Proton which could include a tie up with foreign car makers such as
Mitsubishi, VW, GM to increase utilization of Proton's Tg Malim plant and sale of
Lotus which has been a sapping the group's cashflow. Up side target RM2.68,
Trading Buy.
(RL/DN)
2) GENTING (RM10.36) -
trading at the low end of its defined range for the past six months
between the levels of RM10.24 - RM11.26. The wide divergence in MACD and RSI
also down to its low end of 27 indicate a possibility of a reversal in fortunes
soon. Remains a cheaper entry for exposure to its 49.1% holding in Genting
Malaysia and 51.7% in Genting Singapore. Trading buy with a target of
RM10.80-RM11.20.
