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FLOWS
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Tuesday, 19 November, 2013
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BUY
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SIME,
PERDANA, GENTING
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SELL
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KNM, MAYBANK, GAMUDA
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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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MAYBULK (5077)
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19/11/2013
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RM1.71
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BUY
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RM2.00
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buy Maybulk as the Baltic Dry Index (BDI) is indicating a sharp
improvement in both the quarter-on-quarter and year-on-year Q3’2013
results of the company. The average Q3 BDI is 47% higher than Q2
while the average Q3’13 is 57% higher than Q3’12. After 5 consecutive
quarters of dismal results, the Q3 results may be the catalyst for a major
upgrade of the stock. In addition, a Bloomberg survey of shipping analysts
showed that they expect dry bulk charter rates to increase by 43% in 2014.
Pacific Basin Shipping Ltd, in their recent conference call post their Q2 results,
also said that bulk rates have bottomed in 1H13 and will be higher in 2H13
& in 2014. Maybulk is currently valued at 0.98x p/bk versus than bulk
shippers in the region of P/bk of 1.04x. It is also trading near its strong
support of RM1.70/68 level. Buy
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FGV (5222)
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19/11/2013
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RM4.30
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BUY
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RM4.93
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The stock has retraced nearly 61.8% of its rally from
RM4.09 to RM4.59 in Oct’13. It is also 7% from its recent high achieved post
the announcement of the acquisition of the remaining 51% stake in Felda
Holdings Bhd (FHB). The stock rallied earlier because the purchase
consideration is at an attractive 11x 2012 earnings and a p/bk of 1.2x. This
is especially favourable if compared to FGV’s FY13 PER of 23.5x & p/bk of
2.4x. In addition, the Director General of Felda was quoted to have said that
the vendor, KPF, will use part of the proceeds to acquire at least 10% stake
in FGV (this effectively provides a floor on FGV share price). Technically,
FGV price performance has been disappointing since the first week of
listing, hence it is not surprising that FGV has minimal foreign interest as
most investors have given up on the stock and cut their losses. With the
above acquisition, favourable CPO price with potential target of 8-9%
from the current level (after clearing its resistance neckline level at
RM2,485/ton), coupled with the plantation sector entering a seasonally low
production period which provides positive news flow on declining stock
levels, and being under owned by both local & foreign investors, FGV is a
buy at current levels.
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Calls for NOV Week 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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BHIC (8133)
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12/11/2013
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RM2.65
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ACCUMULATE
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RM3.20
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RM2.98
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+12.4%
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GHLSYS(0021)
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12/11/2013
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RM0.885
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Take Profit
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-
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RM0.825
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-6.8%
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E&O(3417)
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13/11/2013
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RM2.01
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Trading BUY
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RM4.20
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RM1.96
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-2.5%
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BJFOOD(5196)
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13/11/2013
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RM1.63
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ACCUMULATE
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RM2.07
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RM1.67
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+2.4%
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NAIM (5073)
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14/11/2013
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RM3.56
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ACCUMULATE
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RM5.12
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RM3.58
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+0.5%
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ALAM (5115)
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14/11/2013
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RM1.40
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Technical BUY
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RM1.68
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RM1.49
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+6.4%
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WASEONG (5142)
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15/11/2013
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RM1.70
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ACCUMULATE
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RM2.00
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RM1.69
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+0.6%
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PERDANA (7108)
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15/11/2013
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RM1.94
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BUY
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RM2.30
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RM1.95
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+0.5%
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TM(4863)
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18/11/2013
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RM5.16
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Trading BUY
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RM5.90
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RM5.10
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-1.2%
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SWKPLNT(5135)
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18/11/2013
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RM2.50
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BUY
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RM2.90
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RM2.50
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+0.0%
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HOLD
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CONT SELL
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SELL/ TAKE PROFIT
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CONT BUY
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STRONG BUY
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