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FLOWS
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Tuesday, 7 April, 2015
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BUY
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SIME, DIGI, SPSETIA
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SELL
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TENAGA, PCHEM, MAXIS
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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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PUNCAK (6807)
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07/04/2015
|
RM2.72
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TRADING BUY
|
RM3.30
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Following the Selangor Sultan's call for speedy resolution
to the state's water issue between the Federal govt (FG) & the State
govt (SG), and the subsequent more conciliatory statements by the Selangor MB
& the Federal Minister for water, there is positive inertia for a
near-term agreement. Puncak & Engtex are 2 of the better stocks to
benefit from an impending deal.
Puncak (RM2.68) - the SPA signed with PASB in Nov'14 to
sell its water assets for RM1.56 remains intact & is not affected by the
current dispute although the signing of master agreement has to be
completed between FG & SG before PASB can takeover the assets for
RM1.56b cash. Puncak has also announced that the co will pay a special
dividend of RM1.00/share from its cash proceeds (utilizing abt a third of the
cash proceeds). The average SOP of 4 major houses with coverage of Puncak is
RM4.13. Even applying a 20% discount would arrive a TP of RM3.30 (23%
upside). Trading buy
(PT)
 |
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ENGTEX (5056)
|
07/04/2015
|
RM1.02
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ACCUMULATE
|
RM1.20
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Stock is among the top 2 players in Malaysia (by mkt
share) in an estimated RM5.4b pipe industry where the water distribution
infrastructure has reached critical level with NRW averaging 37% &
certain states >50% NRW. Engtex is a main beneficiary of any water deal
that aims to improve water distribution. Valuation is supportive
with historical FY14 6.7x PER & 0.69x p/bk even with
existing environment before the anticipated boost in demand from any
water deal. It is also trading at its support level of RM1.02/1.00 which has
been successfully tested 3x over the last 1.5 yrs. Macd just turned positive
late last week. Trading buy
(PT)
 |
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Calls for MARCH WEEK 4 APRIL
WEEK 1 2015
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STOCK
|
Initiation
Dates
|
Initiation
price
|
BUY/SELL
|
TARGET
PRICE
|
LAST PRICE
|
% Change
since Initiated
|
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TUNEINS (5230)
|
31/03/2015
|
RM1.99
|
ACCUMULATE
|
-
|
RM1.99
|
0.0%
|
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GHLSYS (0021)
|
31/03/2015
|
RM0.96
|
ACCUMULATE
|
-
|
RM1.08
|
+12.5%
|
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AAX(5238)
|
1/04/2015
|
RM0.46
|
Trading BUY
|
RM0.52
|
RM0.45
|
-2.2%
|
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VS (6963)
|
1/04/2015
|
RM4.25
|
TRIM
|
-
|
RM4.01
|
-5.7%
|
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PETDAG (5681)
|
2/04/2015
|
RM20.08
|
SELL
|
BB
– RM17.50
|
RM20.50
|
+2.0%
|
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SUPERMX (7106)
|
2/04/2015
|
RM2.10
|
BUY
|
RM2.40
|
RM2.09
|
-0.4%
|
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BJAUTO (5248)
|
3/04/2015
|
RM3.80
|
BUY
|
RM4.30
|
RM3.86
(ex)
|
+1.5%
|
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|
MATRIX (5236)
|
3/04/2015
|
RM2.73
|
BUY
|
RM3.00
|
RM2.86
|
+4.7%
|
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|
EVERGRN (5101)
|
6/04/2015
|
RM1.16
|
TRIM
|
-
|
RM1.13
|
+2.6%
|
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|
BSTEAD (2771)
|
6/04/2015
|
RM4.50
|
ACCUMULATE
|
-
|
RM4.51
|
+0.2%
|
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|
Performance
|
|
|
Positive
|
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Negative
|
|
|
Neutral
|
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