Morning Call
21/6/12
Flows:
Buys: CIMB, AirAsia
Sells: AmBank, PChem, IJM, Sime
Techincal Stock Alerts:
WCT (RM2.45) - stk has broken above the 1st interim
resistance of RM2.36 since our call on 22 May at RM2.22 and looks poised to
clear the next resistance of RM2.50 soon with next target at RM2.80. Currently
sitting on neckline of a reverse head and shoulder pattern, MACD just cutting
upwards. Recently won a job from Vale which lifted their outstanding order book
to a total of RM 2.5bn (OB awarded so far RM720m v target RM1bn), we believe
that the upcoming awarding of the MRT packages throughout the month of June
& July will further add to their OB replenishment. Property development
prospects also improving with imminent award of EPF's Sg Buloh land, backed by
strong landbank property development GDV of RM7.2bn -BUY. (RL/LJN)
SYSCorp (RM0.465) - recent renewed interest into Maybulk
(gained 10% in past wk) may pull up laggards in similar sector. Shr price has
fallen to a low of 0.33 and have recovered to 0.45 currently, still half of its
IPO of RM1.05. With strong s/h backing from Shin Yang Shipping (owns 55%), stk
trades at attractive PER 10x v Maybulk's 22x, P:B: 0.4x; Div Yields : 3.6%.
Techincally way oversold with RSI 29, MACD cutting upwards. Noticed strong
accum at current lvls with vol strating to inch up- Accum for a tech bounce. (LJN)
