Flows:
BUYS: Armada,
Tenaga
SELLS: MRCB, Genting, AMMB
Technical Stock Calls:-
WCT (RM2.36) - stk has fallen 20% from its peak of RM2.80
and looks severely oversold with RSI at 32. Trading at steep discount to its
peers and underperformance of px is to punish it for poor orderbook
replenishment in 2011. However, co has had a very good 1H with RM650m worth of
contracts awarded so far (total OB replenishment target is RM1bn in 2012). Good
possibility of benefiting from award of EPF's Sg Buloh land in June. Also backed
by strong landbank property development GDV of RM7.2bn -Accum. (LJN)
AirAsia (RM3.33) - stk has been sold down since hitting a
high if RM3.94, bogged down by fears of higher fuel costs and unresolved
problems on the share swap with MAS. Requoted today with resolution announced
via setting up of SPV will see a technical bounce to at least RM3.60.
Technically: RSI 38, MACD cutting upwards. Other outstanding issues include:
imminent listing of 49% owned Thai AirAsia will crystalise value for co as well
as help degear its B/S, lowering its gearing to a more acceptable 0.9x level.
Buy (LJN)