Friday, July 13, 2012

Morning Call | 13 July 2012

MORNING CALL                                       13 JULY 2012

FLOWS;

BUYS: Digi, CIMB, MAS

SELLS: Sime, MPHB, Mulpha

Technical Stock Alert;

1) Media (RM2.26) - interest has picked up in MediaC resulting in stk +7% on heavier vol in past wk while Media lags, still languishing near its  double bottom formation at RM2.18 after retracing 20% from recent peak of RM2.80. Technically poised for rebound as MACD just cutting upwards backed by impending adex spending boost to come from upcoming events: GE13, London Olympics- trades at PER 12x, supported by attractive div yield of 5%-Buy
(LJN)

2) PUNCAK (RM1.30) - volume activity has been building for the past week after the shares established a recent low of RM1.26. There are signs of a breakout from its 3 months consolidation especially if its price can maintain above its SMA 50 levels of 1.34 for an immediate target of RM1.54. The company for the past year has been beefing up other income streams, particularly in the O&G sector which contributed positively to its 1Q numbers. Major rerating will still hinge on resolving the valuation of Selangor State water assets between the Federal and State Government. Trading BUY.