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FLOWS
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Friday, 17 May, 2013
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BUY
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CIMB, TENAGA, MISC
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SELL
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DIALOG, SUNWAY, TM, IHH
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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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IOICORP(1961)
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17/5/2013
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RM5.07
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BUY
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RM5.38
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IOICorp rose from 4.81 to 5.70 on rumours of
the relisting of its property arm, IOIProp, and a distribution-in-specie
of IOIProp shares to its shareholders. Now
that the stock has retraced 71% of its gain on selling of the
news, it is an attractive level for re-entry. The deal is
also accretive to shareholders due to the following: 1) the demerger eliminates holding company
discount; 2) the property assets are injected at 20% discount to market
value and the offer for sale is likely to be priced at a further 30%
discount, giving a total 44% discount to market value. Big cap property
stocks are currently trading at 20-25% discount to their market value; 3) a highly lucrative payout of 27% yield
from the distribution-in-specie of IOIProp shares at the ratio of 1:3 IOICorp
shares; and 4)the offer for sale of IOIProp shares is non-renounceable, hence
the unsubscribed portion of the rights will only accrue to IOICorp
shareholders. Buy
(PT)
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MAYBANK (1155)
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17/5/2013
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RM10.00
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Accumulate On Weakness
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RM10.40
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Maybank (RM10.00) : accumulate Maybank on
short term weakness due to the uncertainty from the resignation of the CEO
and the subsequent search for his replacement. We view this as a temporary
phenomenon as the bank has in place an experienced management team and the
momentum for transformation, implemented in a programme since 2010, is
bearing fruits and is expected to continue with the new CEO. In fact, this
weakness allows investors to build a stake in a well-liked big cap stock and
a favourite in the banking sector, trading at an attractive PER of 13.8x and
12.8x for FY13 and FY14 respectively. This compares favourably versus its 5
years average PER of 17.4x. Maybank also provides an attractive dividend
yield of 5.22%. Technically, the stock has pulled back about 50% of its
post-election rally, hence a decent entry level. Accumulate on weakness. (PT)
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Calls for MAY 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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MAS-OR(3786OR)
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10/5/2013
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RM0.075/RM0.365
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BUY
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RM0.545
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RM0.65
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-13.3%
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LIONIND(4235)
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10/5/2013
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RM1.08
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BUY
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RM1.40
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RM1.09
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+1.0%
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DAYA(0091)
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13/5/2013
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RM0.22
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Trading BUY
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RM0.26
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RM0.225
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+2.2%
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MYEG(0138)
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13/5/2013
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RM1.18
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Trading SELL
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RM1.06
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RM1.33
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+12.7%
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TAANN(5012)
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14/5/2013
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RM3.52
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BUY
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RM4.03
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RM3.70
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+5.1%
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YTLPOWR(6742)
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14/5/2013
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RM1.55
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ACCUMULATE
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RM1.85
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RM1.51
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-2.6%
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MHB(5186)
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15/5/2013
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RM3.82
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BUY
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RM4.50
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RM3.71
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-2.9%
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KKB(9466)
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15/5/2013
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RM1.73
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ACCUMULATE
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RM2.50
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RM1.81
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+4.6%
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BONIA(9288)
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16/5/2013
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RM2.06
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BUY
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RM2.60
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RM2.02
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-2.0%
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HLI(3301)
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16/5/2013
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RM4.40
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BUY
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RM5.20
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RM4.40
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0.0%
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