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FLOWS
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Friday, 19 October, 2012
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BUY
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MAXIS,
IJM, MAS
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SELL
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GENM,
TENAGA, KNM, ASTRO
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Stock
Alert
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STOCK
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DATE
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PRICE
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BUY/SELL
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TARGET PRICE
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LIONIND (4235)
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19/10/2012
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RM1.10
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Strong BUY
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MT RM1.70
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The company managed to post EBITA
positive numbers for its final qtr 2012 of RM34.9m despite the challenging
conditions which could indicate a bottoming of the steel cycle. FYE June 2013
should record better numbers for their long steel products as the are said to
have prequalified as one of the key suppliers for the Sg Buloh-Kepong MRT
line. Current price of the stock is attractive also on the basis of asset
valuation as strategic stakes in listed entities, Parkson Msia (17%), Lion
Forest (72%), Lion Diversified (21%), Lion Corp (19%) at current market value
totals RM1.198bn or RM1.66/share. It is also trading at three year low levels
in terms of price to book of 0.25x. Talks of disposing part of the Lion
Group's steel assets to a foreign strategic partner are apparently still on
going and could be the key catalyst in helping unlocking the hidden value in
the company. Strong BUY with an immediate target of RM1.28 and a medium term
target of RM1.70 or 0.4x Px/Bk.
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FAVCO (7229)
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19/10/2012
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RM1.63
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Trading BUY
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RM1.81
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FAVCO (RM1.63): recent interest in o&g
stks may spill over into related names especially for specialized services
like cranes. Expect demand for cranes to receive a boost with anticipated
increased orderflow in the 2H. Volume for stk picked up recently backed by
strong accumulation activity especially with MACD, RSI at oversold lvls.
Sitting on OB RM700m with fatter margins (11-20%) versus construction (3-5%)
and provides direct exposure to sector rather than via major s/h Muhibah
(owns 62%) which is bogged down by APH problems. Trades at attractive PER 7x
- Trading Buy.
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Calls
for OCT Week 2 / Week 3
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STOCK
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Initiation Dates
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PRICE
|
BUY/SELL
|
TARGET PRICE
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LAST PRICE
|
% Change since Initiated
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NAIM (5073)
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12/10/2012
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RM1.80
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LT Accumulate
|
RM2.02
|
RM1.91
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7.7%
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YTL (4677)
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12/10/2012
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RM1.74
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Mid Term BUY
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RM1.92
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RM1.76
|
1.1%
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REDTONE (0032)
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15/10/2012
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RM0.395
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Trading BUY
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RM0.50
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RM0.395
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0.00%
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3A (0012)
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15/10/2012
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RM1.10
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ST BUY
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RM1.25
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RM1.22
|
10.9%
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DRBHICOM (1619)
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16/10/2012
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RM2.38
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Trading BUY
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RM2.60
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RM2.37
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0.4%
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SILKHLD (5078)
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16/10/2012
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RM0.35
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Trading BUY
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RM0.41
|
RM0.380
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8.5%
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FITTERS (9318)
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17/10/2012
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RM0.685
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Trading BUY
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RM0.80
|
RM0.69
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0.8%
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MRCB (1651)
|
17/10/2012
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RM1.68
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Accumulate
|
RM1.90
|
RM1.68
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0.00%
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MAYBULK (5077)
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18/10/2012
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RM1.44
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Trading BUY
|
RM1.60
|
RM1.41
|
-2.12%
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PADINI (7052)
|
18/10/2012
|
RM1.89
|
Accumulate
|
RM2.10
|
RM2.03
|
7.4%
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Friday, October 19, 2012
Morning Call | 19 Oct 2012
