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FLOWS
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Thursday, 2 January 2014
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BUY
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AIRASIA,
MISC, DAYA
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SELL
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CIMB, MAYBANK,
TENAGA
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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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TIMECOM (5031)
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2/1/2013
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RM3.55
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BUY
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RM4.00
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Stock has been sold down towards the end of
last year with hints of “dress down” for year-end close as fundamentals have
been improving in recent quarters. TimeCom is heavily oversold with wide
divergence in its macd indicators and a RSI reading of 20.5%. It is also
close to its major August’13 support of RM3.50. The Group has announced plans
for regional expansion via M&A by first gaining a foothold in Thailand
and eventually to Indonesia, Vietnam, Singapore and Philippines to fully
utilise the APG’s capacity by tapping into regional bandwidth demand from
Thailand and Indo-China. To recap, TimeCom is estimated to have a 6% stake in
the APG submarine cable which connects Malaysia directly to Korea and Japan.
With that stake, TimeCom is estimated to have an initial capacity of about
3.4Tbps for sale upon APG’s completion by end-2014. Also, Trading at only
13.3x for FY14; 13.2x for FY15 PE which is relatively cheap compared to its
peers of 22.5x on average for FY14; has strong balance sheet with 250mil net
cash. BUY on growth potential on increasing demand for bandwidth in the Asia
Pacific region.
(PT/LJN)
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JTIASA (4383)
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2/1/2013
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RM2.04
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BUY
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RM2.30
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Stock is play on rising CPO prices with its recent results
showing the much reduced role of its original timber business, and the
plantation segment taking over as the main activity, contributing 74% to
group PBT. The main attraction of JTiasa is its average palm age profile of
5.6 years, the lowest amongst the bigger plantation players. Only 12% of its
planted area are considered as mature and this will increase to 40% in 2
years. This means the company has very strong FFB production growth prospects
which is a significant advantage when the big cap plantation players are
experiencing lower production yield from tree stress. The timber division is
also seeing volume growth from global heightening economic activities,
especially in its main export market, Japan. These positive parameters
explain the sharp drop in PER of 17.3x in FY June’14 to PER of 10.1x for FY
June’15, significantly cheaper than the Malaysian plantation average of 19.1x
& regional plantation average of 16.1x. Technically, JTiasa is also
severely oversold with a RSI of 23%. Buy
(PT/LJN)
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Calls for DEC week 3/ JAN week 1 2014
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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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GAMUDA (5398)
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13/12/2013
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RM4.54
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BUY
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RM5.00
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RM4.80
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+5.7%
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YTL (4677)
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13/12/2013
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RM1.62
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Trading BUY
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RM1.80
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RM1.62
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+0.0%
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MRCB (1651)
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16/12/2013
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RM1.24
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Trading BUY
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RM1.40
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RM1.29
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+4.0%
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UEMS (5148)
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16/12/2013
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RM2.30
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BUY
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RM2.60
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RM2.36
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+2.6%
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DRBHCOM (1619)
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17/12/2013
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RM2.74
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BUY
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RM3.10
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RM2.82
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+2.9%
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TAANN (5012)
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17/12/2013
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RM4.14
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BUY
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RM4.56
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RM4.17
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+0.7%
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DELEUM (5132)
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18/12/2013
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RM4.03
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BUY
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RM4.68
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RM4.40
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+9.1%
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E&O(3417)
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18/12/2013
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RM1.93
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Trading BUY
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RM2.76
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RM1.89
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-2.1%
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UNISEM (5005)
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19/12/2013
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RM0.89
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BUY
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RM1.30
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RM1.00
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+12.3%
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BURSA (1818)
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19/12/2013
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RM8.09
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BUY
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RM9.84
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RM8.23
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+1.7%
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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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