|
FLOWS
|
Wednesday, 3 December, 2014
|
|||||||||
|
BUY
|
SKPETRO, TENAGA, SIME
|
|||||||||
|
SELL
|
DIGI, IOIPG,CIMB
|
|||||||||
|
STOCK ALERT
|
||||||||||
|
STOCK NAME
|
DATE
|
PRICE
|
BUY/SELL
|
TARGET PRICE
|
||||||
|
MYEG (0138)
|
03/12/2014
|
RM4.16
|
TAKE PROFIT
|
-
|
||||||
|
Share price recently re-tested its high of RM4.41
exhibiting a short term double-top on expectations that Co will finally
obtain approval of the much delayed custom service tax monitoring (CSTM)
concession expected in Jan’15 where Co will get a fixed fee instead of
revenue sharing. Risks include further delays in approval and will negatively
impact FY’15 earnings. Furthermore, Phase 2 of the CSTM will only commence in
Apr’15 and will only see contribution in FY’16. Co is expected to gear-up to
fund both the CSTM project and Road Safety Diagnostic System (RSDS) which
could have a short-term impact on its dividend policy. Stock is currently
trading at a premium with FY’15 PER of 33.5x vs historical PER band of 18-19x
and RSI overbought @ 70%, we recommend a Take Profit stance. (SPK)
 |
||||||||||
|
WELLCAL (7231)
|
03/12/2014
|
RM1.62
|
ACCUMULATE
|
RM1.80
|
||||||
|
The persistent weakness in natural rubber prices
coupled with the weakening Ringgit vs major currencies are major positives
for Wellcall as it derives 90% of revenue from foreign markets especially the
US/Canada markets which saw fastest growth @ 53% YoY. We also like Group’s
diversified revenue structure as it supplies industrial hoses to a variety of
industries namely manufacturing, construction, mining, automotive, O&G,
F&B and marine. Co’s new plant is expected to be ready mid-2015
increasing capacity by 50% and together with Co’s shift into semi-automation,
we expect earnings and margins to improve moving forward. With a solid
balance sheet (RM41m net cash), undemanding FY’15 & 16 PER of 16.2x &
14.7x supported by dividend yield of 5.6% & 6.2% FY’15 & 16, we would
Accumulate on Weakness. (SPK)
 |
||||||||||
|
|
||||||||||
|
Calls for NOV WEEK 3 | WEEK 4
2014
|
||||||||||
|
STOCK
|
Initiation
Dates
|
Initiation
price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||||
|
UZMA (7250)
|
25/11/2014
|
RM2.50
|
TRADING BUY
|
RM3.00
|
RM1.89
|
-24.4%
|
||||
|
ARMADA (5210)
|
25/11/2014
|
RM1.41
|
ACCUMULATE
|
RM1.50
|
RM1.05
|
-25.6%
|
||||
|
FITTERS (9318)
|
26/11/2014
|
RM0.77
|
TRADING BUY
|
RM0.88
|
RM0.720
|
-6.5%
|
||||
|
TUNEINS (5230)
|
26/11/2014
|
RM1.85
|
ACCUMULATE
|
RM2.15
|
RM1.84
|
+0.6%
|
||||
|
TAMBUN (5191)
|
27/11/2014
|
RM2.19
|
ACCUMULATE
|
RM2.59
|
RM2.11
|
-3.7%
|
||||
|
MUHIBBAH (5703)
|
27/11/2014
|
RM2.47
|
TRADING BUY
|
RM2.82
|
RM2.05
|
-17.1%
|
||||
|
UCHITEC(7100)
|
28/11/2014
|
RM1.41
|
ACCUMULATE
|
RM1.60
|
RM1.37
|
-2.9%
|
||||
|
SKPRES (7155)
|
28/11/2014
|
RM0.725
|
BUY
|
RM0.84
|
RM0.755
|
+4.1%
|
||||
|
SPSETIA(8664)
|
01/12/2014
|
RM3.24
|
ACCUMULATE
|
RM3.50
|
RM3.23
|
-0.4%
|
||||
|
MRCB (1651)
|
01/12/2014
|
RM1.46
|
ACCUMULATE
|
RM1.60
|
RM01.38
|
-5.5%
|
||||
|
Performance
|
|
|
Positive
|
|
|
Negative
|
|
|
Neutral
|
|