Morning Call | 12 June 2013

FLOWS

Wednesday, 12 June, 2013

BUY

FGV, Armada

SELL

MISC, GenM, SKPetro

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

TM(4863)

12/6/2013

RM5.45

ACCUMULATE

RM6.00

after the recent spike to RM5.80, stk is consolidating around the RM5.40-50 lvls on absence of catalyst, dragged lower by its slower Unifi subscriber growth. However, imminent +ves include the proposed access pricing review by MCMC as well as another capital management plan. Given TM’s declining capex trend and cashpile of RM2.7bn, expectations for a special div will provide support for this stk.  Technically attractive as MACD which is oversold is starting to cut up with RSI 52. Trades at PER 15x, yields decent 4%.  Accumulate. (LJN)

DSONIC(5216)

12/6/2013

RM3.16

SELL into Strength

RM2.50

stk climbed another 2% yesterday making a new high of RM3.28 resulting in gains of a good 50% from the recent RM2.20 consolidation lvl following its 2 +ve announcements of RM18.7m MyKad contract from Home Min and its MoU for potential JV with  Republic of Sudan. Believe stk rise over the past 2 wks is excessive and advise to take profit on continued strength as technically looks very stretched with MACD severely overbought and RSI at a high 92. Directors have also begun selling in the market as very attractive gains since its IPO of RM2. Trades at P:B 2.6x - Sell into strength. (LJN)

Calls for JUNE Week 1 &2

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

SCABLE(5170)

4/6/2013

RM1.82

ACCUMULATE

RM2.20

RM1.94

+6.6%

HSL(6238)

4/6/2013

RM1.98

BUY on weakness

RM2.20

RM2.01(EX 0.08)

+5.5%

TA(4898)

6/6/2013

RM0.585

BUY

RM0.85

RM0.59

+0.85%

COASTAL(5071)

6/6/2013

RM2.28

BUY

RM2.60

RM2.18

-4.4%

CMSB(2852)

7/6/2013

RM5.11

BUY

RM6.10

RM5.90

+15.5%

PENERGY(5133)

7/6/2013

RM1.92

ACCUMULATE

RM2.23

RM2.14

+11.5%

PMETAL(8869)

10/6/2013

RM2.57

ACCUMULATE

RM3.00

RM2.54

-1.2%

MUHIBAH(5703)

10/6/2013

RM1.43

BUY

RM2.09

RM1.42

-0.7%

PARKSON(5657)

11/6/2013

RM3.80

ACCUMULATE

RM4.45

RM3.79

-0.3%

QL(7084)

11/6/2013

RM3.29

Trading BUY

RM3.59

RM3.30

+0.3%