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FLOWS
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Thursday, 22 November, 2012
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BUY
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CIMB, GAMUDA, IOIC
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SELL
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IJM,SPSETIA, TM
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STOCK ALERT
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STOCK NAME
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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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KNM (7164)
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22/11/2012
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RM0.50
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Trading BUY
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RM0.585
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During the last 5 years since KNM fell from
its high, each time the stock bounced substantially, it would have
consolidated near the bottom for 15 to 29 weeks. Currently KNM has
consolidated for 27 weeks near its recent bottom. Its weekly charts signaled
multiple positive divergences between the prices and technical indicators – a
good parameter of the negative news already being priced in and discounted.
In addition, one can tell from the trading that there are strong hands
accumulating as despite the huge amount of right shares listed and the huge
trading volume, the stock did not collapse but was only down 1.5 sen for the
day on 20/11/12 before rallying yesterday. It looks like KNM has been sold
down ahead of the rights listing so that buyers are able to buy at lower
prices on listing. The excess shares application success rate is also very
low which would indicate that there are ready buyers for the undersubscribed
rights. Fundamentally, KNM has reported 2 consecutive quarters of good
results due to higher margin projects and the completion of legacy
unprofitable projects. Potential near term newsflow is that management is
confident of finalizing the Peterborough waste-to energy 80MW power plant
project by, concluding the power purchase agreement with a subsidiary
of Marubeni as its offtaker by end-2012. Midterm positive would be the
listing of Borsig in Singapore. KNM trades at a prospective PER of 8.8x.
Trading Buy
(PT)
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GENM (4715)
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22/11/2012
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RM3.45
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Accumulate
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RM3.68
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Play on strong results as recently companies
that reported good results have been rewarded richly. GENM will report its Q3
results on 26/11/2012. Its Q2 results was nearly doubled its Q1 with
the improvement accruing substantially from its overseas operations,
especially the UK, hence Q3 should continue this trend with record arrivals
of tourists to the UK due to the London Olympics. GENM is also currently
trading at the lower end of its trading band with an attractive forward PER
of 11.5x, and would normally do well seasonally because of the holidays and
the festive periods. Accumulate
(PT)
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Calls for NOV Week 2 / Week 3
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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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KLK (2445)
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14/11/2012
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RM20.72
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BUY
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RM23.00
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RM20.56
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-0.07%
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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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RM4.43
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RM4.08
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+1.2%
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COASTAL (5071)
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16/11/2012
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RM2.01
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BUY
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RM2.40
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RM2.01
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0.00%
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QL (7084)
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16/11/2012
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RM3.15
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BUY
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RM3.55
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RM3.16
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+0.1%
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YTLP (6742)
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19/11/2012
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RM1.53
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BUY
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RM1.70
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RM1.54
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+0.7%
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RHBCAP (1066)
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19/11/2012
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RM7.60
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BUY
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RM8.20
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RM7.60
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0.00%
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MBMR (5983)
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20/11/2012
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RM3.42
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BUY
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RM3.72
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RM3.41
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-0.03%
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KIMLUN (5171)
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20/11/2012
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RM1.33
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Trading BUY
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RM1.60
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RM1.34
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+0.7%
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YINSON (7293)
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21/11/2012
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RM1.84
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MT BUY
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RM2.67
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RM1.85
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+0.5%
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CYPARK (5148)
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21/11/2012
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RM1.56
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Trading BUY
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RM2.00
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RM1.56
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0.00%
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Thursday, November 22, 2012
Morning Call | 22 Nov 2012
