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FLOWS
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Wednesday, 14 November, 2012
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BUY
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GENTING, TM, MRCB
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SELL
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TENAGA, SIME, AXIATA
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SECTOR ALERT
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SECTOR
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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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PLANTATION
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14/11/2012
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-
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BUY
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-
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STOCK PICKS
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KLK (2445)
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14/11/2012
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RM20.72
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BUY
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RM22.00
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TWSPLNT (6327)
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14/11/2012
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RM4.03
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BUY
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RM4.50
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CPO – MPOB’s Oct statistics showed that CPO
inventory rose to a record high of 2.51m mt in Oct (+20% Y/Y; +1% Q/Q), but
well below the market expectations of up to 2.7m mt. +16% MoM to 1.76m mt
(strong demand from Europe and Pakistan)). Stronger export numbers+16% MoM to
1.76m mt coupled with the slight 3% M/M decline in production help keep
inventory in check.
This could possibly be seen as inflection point as
we enter a seasonally lower production level and a recovery in demand in China
seen.
From the table below, plantations stocks have
generally been resilient vs the 36% dip in CPO prices from its peak. Our pick
of the bunch in term of the big cap companies is KLK with an upside target of
RM22.00 and in mid caps Tradewinds Plantation with a RM4.50 immediate upside.
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Calls for OCT Week 3 / Week 4
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STOCK
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Initiation Dates
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Initiation price
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BUY/SELL
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TARGET
PRICE
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LAST
PRICE
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% Change since Initiated
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TM (4863)
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07/11/2012
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RM5.69
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Buy on weakness
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RM6.00
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RM5.58
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-1.9%
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AXIATA (6888)
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07/11/2012
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RM6.02
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HOLD
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-
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RM5.91
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-
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DIGI (6947)
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07/11/2012
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RM5.09
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HOLD
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-
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RM4.87
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-
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MAXIS (6012)
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07/11/2012
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RM6.74
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Buy On weakness
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RM7.15
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RM6.68
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-1.2%
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BJTOTO(1562)
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08/11/2012
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RM4.32
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Defensive BUY
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RM4.65
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RM4.30
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-0.4%
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SUPERMX(7106)
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08/11/2012
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RM2.07
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ACCUMULATE
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RM2.08
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RM2.08
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+0.00%
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DRBHCOM (1619)
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09/11/2012
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RM2.40
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Trading BUY
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RM2.80
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RM2.41
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0.05%
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CMSB (2852)
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09/11/2012
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RM3.28
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ACCUMULATE
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RM3.60
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RM3.32
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+1.6%
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GAMUDA (5398)
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12/11/2012
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RM3.66
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BUY
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RM4.00
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RM3.68
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+0.6%
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UEMLAND (5148)
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12/11/2012
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RM2.13
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TRIM
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RM1.90
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RM2.13
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+0.00%
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