Morning Call 20 June 2012-06-20
Flows:
Buys: SKPetro, Genting
Sells: IJM, AmBank, GasMsia, PChem
Technical Stock Alert:
1)LION IND (RM1.19) - Price has fallen to strong support
levels of RM1.18 after languishing for almost a year around RM1.40 lvls. If it
can clear RM1.23, it will complete a small reverse head and shoulder formation
pointing to an immediate upside of RM1.35. Trading down to only 0.26x book
value (which is lower than the entire mkt value of its listed entities), the
weak outlook in the steel industry seems priced in. Stock is also supported by
major s/h starting to buy back shares which may be a prelude to ongoing move by
co to dispose of its steel assets to unlock value. Trading BUY.
2) ANNJOO (RM1.72) - retraced 30% from its peak in Feb of
RM2.22 as fundamentals deteriorated and finally found its bottom at RM1.60. Recently looks poised for a breakout after sitting on
RM1.71 neckline of a small triangle formation with immediate upside to RM1.81
followed by stronger resistance at RM1.90. Looking ahead to improved 2Q rslts
on lower costs, stronger USD v RM and expectations of accelerated demand
underpinned by demand from MRT projs and Petronas orders. Trades at Per'13 10x-Trading buy