FLOWS
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Monday, 24 December, 2012
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BUY
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SIME, GENTING,
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SELL
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MAYBANK, CIMB
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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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FGV (5222)
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24/12/2012
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RM4.67
|
SELL into strength
|
RM4.30
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FGV (RM4.67) – Stock rose to a high of RM5.50 just a few days after
its IPO debut on the 5th of July before facing long 18-so weeks decline.
Stock finally broke away from its lower low, lower high trend on the 21st of
Dec following news of its inclusion into the FTSE Bursa KLCI index. Although
group is backed by a large market cap of RM17b, FGV’s fundamentals remain
weak with unexciting outlook for the next few years affected by its aging
plantation profile with 50% of its palm oil trees are above the 24 year mark
and is due for replanting; thus incurring more cost, with long waiting
period. Technical indicators suggest that the stock is way over bought, RSI
75%, expecting selling pressure to persist due the release of the moratorium
shares held by cornerstone investors which consist of 688,933,633 shares
(approximately 19.8% PUC) due for release after today. Sell into Strength
ahead of the year end window dressing. (RL)
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AIRASIA (5099)
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24/12/2012
|
RM2.53
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Trading BUY
|
RM3.40
|
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AirAsia (RM2.53) - Stock retraced further after KLCI announced the
removal of Airasia from the FTSE Bursa KLCI. This takes effect today but we
feel the selldown is overdone as at current depressed prices, it translates
to only PER’13 of 5x. It is also supported by stochastics triggering a buy
call as technical indicators are oversold with 19% RSI, MACD
recovering-expecting a golden crossing to happen before year end. Recently
group announced the purchase of 100 additional A320 aircraft for US$9.4bil
over the next few years; in line with its target to increase fleet numbers to
510 aircrafts by 2020. We continue to like Airasia for its fundamentally
solid business model, its strong balance sheet as well as its current
position in the market. Looking ahead, we expect group's earnings to grow
ahead of the imminent opening of klia2 in May 2013. Propose a trading buy
call behind attractive cheap valuations and impressive growth story and
oversold position. (RL)
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Calls
for DEC Week 2/ Week 3
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STOCK
|
Initiation Dates
|
Initiation price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change since Initiated
|
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HSL (6238)
|
13/12/2012
|
RM1.48
|
Accumulate
|
RM1.70
|
RM1.48
|
-0.0%
|
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UNISEM (5005)
|
13/12/2012
|
RM0.90
|
Trading BUY
|
RM1.20
|
RM0.87
|
-3.4%
|
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TMCLIFE (0101)
|
14/12/2012
|
RM0.33
|
BUY
|
RM0.41
|
RM0.370
|
+11.1%
|
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BAT (4162)
|
14/12/2012
|
RM61.10
|
SELL
|
RM56.40
|
RM58.02
|
-5.3%
|
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CYPARK (5184)
|
19/12/2012
|
RM1.54
|
BUY
|
RM2.00
|
RM1.59
|
+3.2%
|
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DIALOG (7277)
|
19/12/2012
|
RM2.39
|
BUY on weakness
|
RM2.80
|
RM2.42
|
+1.4%
|
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GCB (5102)
|
20/12/2012
|
RM1.61
|
BUY
|
RM1.90
|
RM1.60
|
+0.6%
|
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NAIM (5073)
|
20/12/2012
|
RM1.79
|
BUY
|
RM2.30
|
RM1.78
|
+0.5%
|
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MAHSING (8583)
|
21/12/2012
|
RM2.16
|
Accumulate
|
RM2.50
|
RM2.11
|
-2.3%
|
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QL (7084)
|
21/12/2012
|
RM3.07
|
BUY on Weakness
|
RM3.60
|
RM3.09
|
+0.6%
|
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Monday, December 24, 2012
Morning Call | 24 Dec 2012
