MORNING CALL 22
AUGUST 2012
FLOWS;
BUYS: Sime, AMMB,
Axiata
SELLS: Digi, JCY,
AirAsia
Technical Stock Alert;
BRDB (RM2.56) - the stock has retraced back significantly
from its year high of RM2.76 after its major shareholder, Ambang Sehati
indicated it was looking at a privatization @ RM2.90/share and RM1.80/warrant.
The current levels are back to pre announcement levels and RSI has since dipped
by almost half, from a high of 80. These levels represent an attractive entry
for the possible M&A play with a 13% upside for the mother shares and 24%
for its warrants which trades at RM1.45 with a strike price of RM1.10 and
expires on Sept 29. Trading Buy with a stop loss of RM2.50 which could indicate
the deal is off.
YTLCORP (RM1.86) - stock is moving back towards the
RM1.80 levels which represent a good accumulation levels after its recent rally
to RM1.96 on increased MSCI weighting. The story of implementing the High Speed
Rail project linking KL-Spore has once again resurfaced with YTLC a leading
contender for its infra works. Besides this, its 51.7%subsdiary YTL Power could
also be back in the limelight for the renewal of its PPA which expires in Sept
2015. With 1MDB recently acquiring Genting Sanyen @ EV/MW of RM4.7m, we do not
discount the possibility of a similar deal for the group. Buy on weakness.
