Morning Call | 25 Sept 2012

FLOWS	TUESDAY, September 25, 2012
BUY	YTL, MRCB, LATEXX
SELL	MAYBANK, UOA, AMMB
Stock Alert
STOCK	DATE	PRICE	BUY/SELL	TARGET PRICE
KULIM (2003)	25/9/2012	RM4.68	BUY	RM5.00
Stock has dropped from 5.40 recent high in mid-August to 4.68 low, ie. a retracement of 13.3% in about 1 month vs the KLCI’s 2.6% fall due to fears that the privatization deals of KFC and QSR would be called off. However, accumulation was seen in the charts when Kulim fell to 4.70 and below for the past week, and this pattern was subsequently substantiated in the Edge that an agreement has been struck between the various stakeholders for the privatization deals to proceed. In view of the likelihood of a substantial special dividend to be declared once the deal is done, Kulim will naturally see a very significant bounce. Hence buy now for a trade for that event. (PT)
GENM (4715)	25/9/2012	RM3.40	ACCUMULATE	RM3.60
Company has shown improvement in its Q2 results due mainly to its UK operations and this is expected to improve even further in Q3 coz of the London Olympics. In addition it was reported that Vietnamese officials at Chu Lai economic zone will meet Genm on Sept 27 to discuss the co’s involvement in a USD4bn casino-hotel project planned to be built in the area. Genm has also retraced sharply from a high of 3.78 a week ago due to fears of a hike in gaming taxes in the coming budget. However, such an event is binary in nature as the stock may also rebound sharply if it doesn’t happen; and Genm, already trading at an undemanding forward PER of 11.3x coupled with potential overseas growth, should not have much downside from here. Accumulate (PT)
Calls for SEPT Week 3
STOCK	DATE	PRICE	BUY/SELL	TARGET PRICE
BENALEC (5190)	18/9/2012	RM1.12	Trading BUY	RM1.25
GAMUDA (5398)	18/9/2012	RM3.40	BUY	RM3.80
BURSA (1818)	19/9/2012	RM6.22	BUY	RM6.60
MUDAJYA (5085)	19/9/2012	RM2.70	BUY	RM3.02
PPB (4065)	20/9/2012	RM12.14	BUY	RM13.10
MAS (3786)	20/9/2012	RM1.01	Trading BUY	RM1.16
PHARMA (7081)	21/9/2012	RM7.43	Accumulate	MidTerm TP - RM8.80
DAYANG (5141)	21/9/2012	RM2.00	BUY	RM2.20
KLK (2445)	24/9/2012	RM22.06	TRIM	RM20.00
MAYBULK (5077)	24/9/2012	RM1.41	BUY	RM1.60