MORNING CALL 16 JULY
2012
FLOWS;
BUYS: CIMB, Digi, Bstead
SELLS: Gamuda, AMBank, PChem
Technical Stock Alert;
NAIM (RM1.70) - Expected to be formally awarded Package
S4 of the MRT package comprising construction of the elevated stations at Sec
16, Pusat Damansara and Semantan valued at RM208.2m This will help push order
book above the RM1bn mark. Remains one of the cheapest construction names with
current year PE at 5.6x with exposure to
the O&G sector via its 33.6% stake in Dayang and property development
potential of RM800bn GDV in Sarawak. MACD and RSI is showing a positive
divergence indicating that a possible break out from its tight range btw
RM1.70-RM1.80 for the past 3 months could be imminent.
Immediate target RM2.00. BUY.
TRC (RM0.64) - MACD flattening out, RSI neutral at 47,
stk is poised to breakout once it clears above RM0.655 (200D SMA) on
anticipation of further contract awards with 10% immediate upside target of
RM0.72.
Recently awarded contract from Kompleks Dayabumi Sdn Bhd
for alteration and refurbishment works (Phase2) for RM36m bringing outstanding
order book to RM950m v mkt cap of RM302m, providing up to 2 years' earnings
visibility. TRC will be a strong contender to bid for ETP, SCORE and MRT due to
its strong proven track record in undertaking government contracts. TRC is the
only co out of the 28 companies shortlisted to bid for the above-ground work
packages that is pre-qualified to bid for all the 18 work packages. Co is also
backed by a strong B/S with net cash of RM124.4m or 27sen/share. Trading buy
