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FLOWS
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Tuesday, 3 December, 2013
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BUY
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MAYBANK,
ASTRO
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SELL
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UEMS, CIMB, ALAM
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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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SYSCORP (5173)
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3/12/2013
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RM0.435
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BUY
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RM0.50
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Group reported a turnaround in 1QFY14
performance from improvement in the vessel new build & repair segment
despite poor results from the shipping segment due to low dry bulk rates,
high bunker costs & a loss on disposal of vessel of RM3.9m. We are
expecting a jump in profit for the Q2 as the current quarter to date average
bulk rates are 35% higher than Q1, and over the last 2 weeks, dry bulk rates
have surged 26%. Bunker costs, which forms a major portion of total operating
costs, will also be lower as crude oil prices have fallen 6.5% QonQ.
Malaysian shipping stocks have always been laggards compared to their peers
historically despite obvious improving fundamentals. Shipping companies from
Singapore, Hong Kong & USA have rose from 3% to 20% in the past month.
SYSCorp, which trades at an attractive p/bk of 0.47x, is still consolidating
in the same trading band of RM0.40 – 0.50 which has been in existence
since Dec’11. Its current price is only 41% of the original IPO price of
RM1.05 in June’10. Buy
(PT)
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CMSB (2852)
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3/12/2013
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RM6.09
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Take Profit
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-
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CMS has gained 19% since the end of Oct &
89% ytd compared to the flat performance of the KLCI index over the same
period & an 8% ytd return. Its heavily overbought as seen by the extreme
readings of its various technical indicators, for e.g. the RSI of 85%. It is
also trading near its strong resistance of RM6.10. On a historical basis, the
fundamentals are also stretched with trailing & forward PER of 13.6x
& 12.6x, and p/bk of 1.3x versus 5-year average PER & p/bk of 8.7x
& 0.6x respectively. Although CMS chart has a reverse head & shoulder
pattern with an upside target of RM6.27 (about 3% from current price), we
viewed this as an opportunity to take profit into strength.
(PT)
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Calls for NOV Week 4 / DEC week 1
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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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BJLAND (4219)
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26/11/2013
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RM0.815
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BUY
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RM1.47
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RM0.83(ex)
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+1.8%
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BSTEAD (2771)
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26/11/2013
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RM5.33
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ACCUMULATE
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RM6.00
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RM5.36
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+0.5%
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BENALEC (5190)
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27/11/2013
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RM1.01
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Trading BUY
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RM1.23
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RM0.93
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-8.0%
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SURIA (6521)
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27/11/2013
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RM2.41
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ACCUMULATE
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RM3.44
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RM2.65
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+9.9%
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MAHSING (8583)
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28/11/2013
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RM2.16
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Trading BUY
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RM2.60
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RM2.22
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+2.7%
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GAMUDA (5398)
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28/11/2013
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RM4.76
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BUY on weakness
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RM5.20
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RM4.70
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-1.2%
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PANTECH (5125)
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29/11/2013
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RM0.995
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ACCUMULATE
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RM1.15
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RM0.975
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-2.1%
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MHB (5186)
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29/11/2013
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RM3.74
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ACCUMULATE
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RM5.20
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RM3.77
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+0.8%
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PMETAL (8869)
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2/12/2013
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RM2.36
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BUY
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RM3.12
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RM2.33
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-1.3%
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PCHEM (5183)
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2/12/2013
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RM6.75
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Trading BUY
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RM7.30
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RM6.75
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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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