MORNING CALL 27 JULY
2012
FLOWS;
BUYS: UEMLand, Sime, KEuro
SELLS: MAS, Genting, Maybank
Technical Stock Alert;
GENT MSIA (RM3.30) - Unjustifiably sold down recently in
tandem with its parent company Genting Bhd on fears of slowing prospects in
Singapore and regulatory intervention. Bulk of their earnings continues to be
derived from its Malaysian Casino operations which are helping to finance its
expansion into UK and more recently US. They also have a stake in Genting HK
which controls its casino in the Philippines. Its stock price after touching a
recent high of RM3.72, has tumbled 11%
to the lowest levels since Oct 2011. RSI is at an extreme oversold level of 25 and widening MACD divergence showing signs or a
reversal soon. BUY with a technical rebound target back to RM3.62.
Gamuda (RM3.45)-stk dropped another 3% yesterday despite
being the underperforming big cap construction name recently on worries of
impending GE13 which may jeopardize contract awards to co. This selldown is a
good opportunity to buy on weakness as it nears its recent low and next support
lvl of RM2.38. Sitting on OB of RM5.5bn (RM4.4bn from recently awarded MRT
tunneling proj) with another RM8bn contract expected from Gemas-JB double
tracking proj and more MRT awards in offing, trades at lower end of PER band of
13x v leader IJM's 17x-trading buy.
(LJN)
