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FLOWS
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Tuesday, 16 July, 2013
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BUY
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CIMB, IOICORP,
MAYBANK
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SELL
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DIALOG, JCY, KLK
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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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JOHOTIN(7167)
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16/7/2013
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RM1.97
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BUY
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RM2.60
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While the group’s tin can division might be
confronting challenges of volatile raw materials and heavy competition, the
group’s move to acquire Able Dairies Bhd in 2011 and moving into the F&B
market puts it back into the driver seat as of FY12 onwards, c.60% of the
revenue will come from the F&B segment. The group’s F&B dairy segment
will be continue to drive growth and profitability due to strong condensed
milk demand in 3rd world countries such as Africa and India. According to one
of TetraPak’s report, they expect Africa alone will see consumption climb
from 15bil litres in 2010 to 25bil litres by 2020. Fundamentally, group is
only trading at 7x PE and should see a rerating in the near future if it were
to be compared to other f&b players like nestle and F&N that’s
trading at 20x PE. Group is netcash of 15mil as of 4Q2012. Pays 2% div.
Technical chart shows the forming of a reverse head and shoulder with a 22
sens upside from RM2.05. MA10,25,50, consolidated well and has been creeping
upwards, MACD still flattish. Stochastics about to trigger a BUY call
indicating momentum. BUY with a near term TP of 2.27.
(RL)
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GENM(4715)
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16/7/2013
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RM3.99
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Take profit
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RM3.68
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Recent strength in the share price was linked
to the launching of the new Resort World Bimini in the Bahamas which also
offers an alternative to Miami since the outcome of the liberalisation of
casino in Florida state is still uncertain. Although this might just be a
stepping stone to penetrating the US market, GENM’s investment in the venture
is relatively small thus earnings impact might too be minimal. While it’s
still too early to gauge the effectiveness of the JV business, GENM’s 2Q13
earnings should be weaker than 1Q. Volume has been tapering off since the
announcement of the JV in the US. Currently stock is trading at the top range
of its valuation of 15.7x PE vs 1 year avg of 16x. RSI 58% and has turned
down. Suggest taking profit into strength around current levels and Buy back
around RM3.68 which is 13.6x PE based on last 4Q EPS of 27sens.
(RL)
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Calls for JULY 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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FITTERS (9318)
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9/7/2013
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RM0.745
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ACCUMULATE
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RM1.15
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RM0.720
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-3.4%
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OLDTOWN (5201)
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9/7/2013
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RM2.75
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BUY on weakness
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RM3.40
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RM2.77
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+0.7%
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POS(4634)
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10/7/2013
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RM4.80
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ACCUMULATE
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RM5.50
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RM4.75
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+1.1%
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TMCLIFE(0101)
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10/7/2013
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RM0.395
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BUY
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RM0.50
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RM0.385
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-2.6%
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SUPERMX(7106)
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11/7/2013
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RM2.00
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SWITCH
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RM2.32
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RM2.09
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+4.5%
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CRESBLD(8591)
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11/7/2013
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RM1.23
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BUY
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RM1.44
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RM1.34
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+8.9%
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MTDACPI(5924)
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12/7/2013
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RM0.555
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BUY
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RM0.76
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RM0.59
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+6.3%
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GENTING (3182)
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12/7/2013
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RM9.98
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BUY
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RM10.58
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RM10.04
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+0.6%
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WCT (9679)
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15/7/2013
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RM2.49
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ACCUMULATE
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RM2.98
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RM2.44
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-2.1%
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JCY(5161)
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15/7/2013
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RM0.705
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Trading SELL
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RM0.53
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RM0.705
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0.0%
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