MORNING CALL 17
AUGUST 2012
FLOWS;
BUYS: Dialog,
Maybank, JCY
SELLS: TNB,
UEMLand, YTLC
Technical Stock Alert;
ARMADA (RM3.75) - we take comfort from its latest
quarterly results reporting which shows operation wise the company continues to
run efficiently with EBITA margins above 60% and 99% uptime for its FPSOs. Management has acknowledged the markets disappointment in
the lack of new major contracts but is confident of securing at least one if
not two of the 5 FPSOs they are currently bidding for, before year end. Current
order book remains healthy at RM10.6 (including extensions). Its RSI is showing
some positive divergence despite price continuing to languish around its year low
of RM3.67. Expect a significant bounce to around the RM4.08 upon the securing of the FPSO contract. BUY
Maxis (RM6.98) - stk has crept up from RM6.20 to RM7 on
possible funds accumulation ahead of increase in weightage in MSCI Index by
month end. Technically MACD signaling overbought situation with RSI
at high 75. Advocate to Sell into strength as operating cash flows
may be insufficient to sustain the attractive dividend payout in future even as
co faces margin compression from increased marketing efforts to regain market
share. In addition, previously enjoyed tax incentives for broadband rollout
will also cease this year.
(LJN)