MORNING CALL 16
AUGUST 2012
FLOWS;
BUYS: Digi, CIMB, Airasia
SELLS: Sime, MPHB, TimeCom
Technical Stock Alert;
AnnJoo (RM1.54) - Prices of stock have been sliding since
July caused by lower demands from Europe affecting Annjoo's results in the
2h12. However recent falling prices of global iron ore will
help offset the lack of demand by widening profit margins of steel in the coming
quarters. Looking ahead, local demands should pick up with increasing MRT
projects being awarded. Stock price which earlier breached below its support of
RM1.66 has found a strong support at RM1.52.
MACD is now turning upwards with improving RSI. Stochastics triggered a
buy call. Div yield 4.8%. Trading Buy
(RL)
NOTION (RM1.24): Share price has been trading in the
RM1.10-1.30 range YTD. A rerating
catalyst for NOTION could come from its 3Q numbers due soon. QoQ, sales is
expected to grow high double digit while maintaining PAT margins around 20%.
This is on the back of Western Digital expecting sales to grow in double digit
(40%) in next quarter while Nikon expect its sales to grow by 12% for Apr-Sep
CY12. Trades at attractive FY13 PE of only 6x vs JCY 7.6x. Trading Buy
immediate target price RM1.60-1.70
(TYK)