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FLOWS
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Friday, 12 April, 2013
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BUY
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CIMB, IOI, DIGI
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SELL
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DIALOG, JCY, SIME
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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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CMSB(2582)
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12/4/2013
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RM3.25
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ACCUMULATE
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RM3.53
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The share price
has been relatively subdued for the past half a year, despite its improving
fundamentals. The earnings for the group looks poised for a significant
improvement after the conclusion of its rationalization exercise. The key
business divisions of cement, construction material, property and road
maintenance continue to do well. The cement division will be its key earnings
driver in the short term, while the clinker unit is expected to turn around
in FY13 from a loss of RM29m in FY12. It’s 20% stake in the OM smelting
project & 51% interest in Samalaju Property Development ( huge land-bank
at low book value) are catalysts for its mid-term prospects. We think the
market has been overly concerned about the group’s perceived political
connection, leading to undervaluation of the stock. CMSB’s strong B/S &
established minimum 30% dividend policy (translating to potential yields of
c5% from FY13) are added attractions. Currently trading at less than 7x FY13
PE, which is about 30% discount to other mid cap size contractors average PE
of 10x, we believe CMSB is poised for a re-rating after the GE – Accumulate.
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TDM(2054)
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12/4/2013
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RM4.52
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Trading SELL
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RM3.90
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TDM RM4.52 : The share price of
TDM has moved up c28% over the past 3 weeks, before news of a 22s dividend
and a proposed bonus issue & share split was announced on April 9.
Although news-flow on plantation has been improving, we reckon CPO prices
will still be subdued until the end of the year, with stock levels still in
excess of 2m mt & expectation of further earnings disappointment in
upcoming quarters remain. On the recent share price run up, resisitance was
seen at RM4.60, and technical indicators are now deep within the overbought
levels (RSI 86). We believe the benefits of the proposals has been factored
in - Trading Sell, buy-back at RM4 ( FY13 PE 8.8x).
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Calls for APRIL Week 1-2
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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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SCIENTX(4731)
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5/4/2013
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RM3.78
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Trading SELL
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RM3.40
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RM3.83
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+1.3%
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COASTAL(5071)
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5/4/2013
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RM2.00
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Trading BUY
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RM2.50
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RM2.00
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0.0%
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FITTERS(9318)
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8/4/2013
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RM0.62
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ACCUMULATE
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RM0.75
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RM0.615
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-0.8%
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CMMT(5180)
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8/4/2013
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RM1.89
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Defensive BUY
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RM2.06
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RM1.93
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0.0%
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CRESBLD(8591)
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9/4/2013
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RM0.95
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Trading BUY
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RM1.20
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RM0.965
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+1.5%
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MYEG(0138)
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9/4/2013
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RM0.87
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Trading BUY
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RM1.20
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RM0.86
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-1.1%
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KNM(7164)
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10/4/2013
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RM0.495
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Trading BUY
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RM0.60
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RM0.485
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+2.0%
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YEELEE(5584)
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10/4/2013
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RM0.92
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Trading BUY
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RM1.10
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RM0.945
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+2.7%
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DIALOG(7277)
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11/4/2013
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RM2.39
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ACCUMULATE
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RM2.80
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RM2.37
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+0.8%
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GBGAQRS(5226)
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11/4/2013
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RM0.94
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ACCUMULATE
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RM1.04
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RM0.95
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+1.0%
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