MORNING CALL 6 AUGUST
2012
FLOWS;
BUYS: MAS, Maybank, Sime
SELLS: GentM, Axiata, DRBHcm
Technical Stock Alert;
COASTAL (RM1.84) - price has pullback substantially after
touching a two month high of RM2.06 when it announced a sizeable vessel
contract. The RM446m contact for 12 vessels brings its full year orders to
almost RM600m. Its price is now finding support at around the RM1.80 levels
with RSI showing signs of turning up again at 39. Buy for its cheap valuation
of 6x current year PE and potential for diversifying into O&G Fabrication.
Immediate resistance RM2.00.
SUNWAY (RM2.20) - a construction company cushioned by the
its property earnings although recent management decision to lower property
launches this year has seen weakness in the stock price. Despite the slowdown
in launches, the company will still record strong contribution from properties
as it has unbilled property sales of RM2.1bn.
Current sell off has seen the price fall back to immediate support of
RM2.20 which is a good entry level with a trading upside of RM2.36. Trading BUY
