Thursday, April 12, 2012

Morning Call | 12 April 2012

MORNING CALL                                       12 April 2012

FLOWS;

BUYS:  YTL, MRCB, IJM

SELLS:  Kencana, Axiata, GentM

Technical Stock Alert;

POS (RM2.75) - Has been in a consolidation phase around the RM2.70 levels since touching a high of RM2.96 in early Jan. Current signs of its MACD cutting upwards with an accumulation pattern on increased volume evident in the past few trading sessions. A break above the RM2.78 levels could see it touch its double bottom target of RM2.90. Interest could be stirred ahead of its planned Transformation Plan Phase 2 , where its direct mail business is targeted as a main earnings stream. Accumulate.
(AL/DN)

STOCK OF THE DAY - INTEGRA (RM1.34)

-          Chairman Amin Rasip recently increased his stake by 11.89m to
23.5%, making him the largest single shareholder above TNB's 2215%.

-          TNB its main customer for the Lekir Bulk Terminal (LBT) is
expected to increase its coal shipment from 6m/year to 9m/year by 2014 with the expansion at its Janamanjung power plant.

-          Previous disagreements with the existing TNB MD will be
resolved in June with Che Khalid stepping down from his position.

-          Amin Rasip remains confident of securing an agreement with
Vale to handle and process some of its products before shipment back out despite the latter's own plan for a port in Teluk Rubiah.

-          There are plans for and economic zone around LBT catering for
commodities such as limestone, coal, biomass, cooking oil and palm oil.

-          Technically its RSI has just turned up at 49, with MACD
looking to cut upwards. Immediate resistance of RM1.40 with a short term target of RM1.54.

-          Currently trading at a historical PE of 9.2x and 0.7x P/Bk,
BUY.