Tuesday, April 23, 2013

Morning Call | 23 April 2013


FLOWS
Tuesday, 23 April, 2013
BUY
AMMB, CIMB, SIME, MRCB
SELL
IOIC, MAXIS, IJM
STOCK ALERT
STOCK NAME
DATE
PRICE
BUY/SELL
TARGET PRICE
SKPETRO(5218)
23/4/2013
RMRM3.10
BUY on weakness
RM3.80
Stock is retracing from new high of RM3.22 with MACD oversold and RSI at 53 creating a good opportunity to accumulate this stk on weakness. In today’s EGM s/h should approve the share swap and private placement to finance the acquisition of SeaDrill’s assets to create an international behemoth with massive OB of RM18.2bn with access to more international waters. Full impact of SeaDrill’s acquisition will be felt later part of the year whilst its 1st marginal oilfield contract will be imputed in 4Q13. Co hopes to secure more pipe lay supply vessel (PLSV) contracts from Petrobras as it is one of two shortlisted bidders. (LJN)
 
TOPGLOV(7113)
23/4/2013
RM6.09
Take Profit
RM5.50
Stock has surpassed our target of RM5.80 (refer morning call dated 14/3/13) as it led the spike in glove sector recently on fears of H7N9 virus spreading. Since then, glove manufacturers have been making statements that there has been no immediate impact on demand due to this new flu outbreak in China. Technically, MACD is severely overbought and is turning down whilst RSI 57 and it just cut the 10D SMA lvl. Trades at premium to mkt PER17x and outperformed the most in recent run up, suggest to take profit and to buy back around RM5.50 lvls. (LJN)
 

Calls for APRIL Week 2-3
STOCK
Initiation Dates
Initiation price
BUY/SELL
TARGET PRICE
LAST PRICE
% Change since Initiated
TAGB(5158)
16/4/2013
RM0.245
ACCUMULATE
RM0.33
RM0.245
0.0%
IJM-WC (3336WC)
16/4/2013
RM1.36
BUY
RM1.80-RM2.00
RM1.47
+8.0%
AIRPORT(5014)
17/4/2013
RM5.70
BUY on weakness
RM6.40
RM5.80
+1.7%
PLENITU(5075)
17/4/2013
RM1.97
Strong BUY
RM2.52
RM1.94
+1.5%
WASEONG(5142)
18/4/2013
RM1.63
ACCUMULATE
RM1.84
RM1.63
0.0%
PANTECH(5125)
18/4/2013
RM0.755
BUY
RM0.85
RM0.75
-0.6%
HSL(6238)
19/4/2013
RM1.54
ACCUMULATE
RM1.74
RM1.54
0.0%
TAANN(5012)
19/4/2013
RM3.52
BUY on weakness
RM4.10
RM3.50
-0.5%
TCHONG(4405)
22/4/2013
RM5.61
Take Profit
RM5.05
RM5.55
-1.0%
MAHSING(8583)
22/4/2013
RM2.28
BUY
RM3.00
RM2.29
+0.4%