MORNING CALL 2 April 2012
FLOWS;
BUYS: PBBank, Genting, RHBCap
SELLS: PChem, AMMB, AirAsia
Technical Stock Alert;
1)DIJACOR (RM1.23) - stk peaked at RM1.72 and collapsed all the way to current lvls of RM1.20 upon announcement of asset injection exercise. Recall that Its major shareholder Tan Sri Danny Tan has proposed to inject 73 privately held properties for RM948.7m to be paid via RM250m cash + 10 year 2% coupon redeemable convertible unsecured loan stocks and a rights issue of up to 491.3m shares @ RM1.20. Believe the sell down is overdone as RSI at 32, vol has thinned out and has fallen back to rights price. Trades at PER 8x-trading buy for bounce.
(NL/DN)
2) WCT (RM2.44) - recent accum to add stake by OCBC, KWAP could be in anticipation of further OB enhancement (exp RM1bn OB replenishment for 2012, already awarded RM650m worth) and imminent award of EPF Sg Buloh land. MACD oversold lvls and RSI at 25-Accum.
(NL)
3) DRBHCM (RM2.52) - Share price has retraced more than 10% from it's recent high of RM3.26 to touch a recent low of RM2.83 yesterday. Stk seeing immediate support at RM2.50lvls backed by attractive valuations of FY13 P/Bk of 0.8x & PER of 10x. Best proxy to VW's ambition to become a key Asean player and potential from Proton acqn remains unexplored. Trading buy.
(NL)
