Accumulate TDM - Maybank

TDM Stock Code :2054 Price: RM4.72

Our featured stock this week is TDM Berhad (TDM). The company is an upstream oil palm plantation player as well as the operator of  three specialist medical centers  in Malaysia. Currently, the company owns 25,000 hectares of land in Indonesia and 37,000 hectares of land in Terengganu. This brings the total land bank TDM owns and manages to 62,000 hectares. The company is  in the process of acquiring a hospital in the Klang Valley, and plans to build two more new hospitals on the East Coast over the next three years. 

above: click to enlarge

Maybank IB research recently released a Non-Rated report on TDM where we highlighted the fair value of the stock to be at MYR5.50, significantly higher than the current share price of MYR4.72. We feel that TDM is deeply undervalued due to  a  lack of analyst coverage, its relatively thin trading volumes and shareholding structure which  lacks  institutional ownership apart  from  the Terengganu government’s 63%  stake. However, over the past five years, TDM has successfully divested all of its non-core businesses, raised FFB yields and turned most of its hospitals profitable.

TDM Berhad (TDM),  through its subsidiaries,  manages oil palm plantations, trades palm oil and related products. The company also provides consultancy and management services to specialist medical centers.

above: TDM Daily chart (click to enlarge)

TDM  reached a significant weekly Wave 4 low at MYR2.60 in early October 2011 with grossly oversold and bullish chart signals. Due to all its positive indicators, it is likely to surge to its obvious weekly upside Wave 5 targets (of MYR5.27, MYR5.42 and MYR5.90) and resistance levels above. ACCUMULATE (TECHNICAL) on dips for TDM, with stop-loss at MYR3.93

The weekly indicators (such as the CCI, DMI, MACD, Oscillator and Stochastic) are positive and now depict fine indications of TDM’s prolonged price strength. We expect TDM to remain firm on any dips to its support levels of MYR3.95 and RM4.72. It will attract some major buying at those levels. The only resistance level (and all-time high) of MYR4.84 will offer token selling activities. Our  technical upside targets for TDM are
MYR5.27, MYR5.42 and MYR5.90. Stop-loss is at MYR3.93.

above: TDM Quarterly Earnings (click to enlarge)

by Maybank Investment Bank

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Puncak Niaga - Trading Buy

Trading Buy – Puncak Niaga Holdings RM1.48 Stock Code: 6807

Chart wise:
A trading buy, Puncak Niaga’s candles have largely been on the downtrend for the past few months and recently appeared to have bottomed out. It rebounded from a base at RM0.95 and is currently recovering. Its daily RSI is surging ahead accompanied by slightly bullish MACD and stochastic.

Puncak Niaga Daily Chart: click to enlarge
It had also broken through its RM1.20 resistance, which currently acts as its immediate support evel. The next price objective as well as resistance is at RM1.60. Its short-term moving averages are rising again after being flattish for a while. As Puncak had broken out of the downtrending channel, we are taking a Buy position on the stock.

by: Mercury Securities

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Trading Buy – PMetal

Press Metal Bhd (stock code 8869) – Industrial Products – RM2.01.

Press Metal daily chart (click to enlarge):
Chart wise:
After lingering at its RM1.73 level for the past month, Press Metal’s candle attempted to break out of its triangle formation and breached the RM2.00 level on Tuesday. As a result, its’ stochastic and RSI strengthened. The lagging MACD, meanwhile, has just crossed the trigger line on the upside.

Overall, the stock is a trading buy as a breakout has occurred and the RM1.85 level has been taken out. Beyond RM1.85, the other resistance is at RM2.05. The support, meanwhile, is at RM1.72 and RM1.60.

by Mercury Securities

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Accumulate (technical) Hapseng - Maybank

HAPSENG – RM 1.63  Stock Code 3034
Hap Seng Consolidated Berhad (HAPSENG)  operates oil palm and cocoa plantations, trades heavy equipment and motor vehicles, fabricates and sells commercial trailers and tankers, provides leasing and money lending  services, and manufactures agricultural fertilisers, agro-chemicals, building materials  and plantation supplies.

below: Hapseng Dail Chart (click to enlarge)HAPSENG made a minor daily Wave 4 low  of MYR1.33  on 25 November 2011, with oversold and bullish signals. Furthermore, its positive chart indicators are strongly supportive of further upside. This stock may be poised to break into higher territory.

ACCUMULATE (TECHNICAL) on dips for HAPSENG with its firmer support areas at MYR1.44 and MYR1.63. The potential upside target areas are at MYR1.83, MYR1.89 and MYR1.99. Stop-loss is at MYR1.42. 

by Maybank Investment Bank

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Trading Buy – Eng Tecknologi

Current Stock Review – Eng Teknologi Holdings Bhd (stock code 8826)–Technology sector –RM1.69.

Above: Eng Teknologi daily chart (click to enlarge) 

Chart wise
EngTeknologi’s share price is forming a double bottom,having found its support at RM1.43 that repelled  two  selling  waves.  It  had  also  broken  through  the overhead  resistance line  while  its technical indicators are on the move again towards the upside.

The  preliminary  target  is  RM1.85-1.90,  although  a failure to  penetrate  the  immediate  RM1.72 resistance may see the share price making a retracement to the RM1.43support to form multiple bottoms. Nevertheless, its rising indicators portends of better technical outlook for Eng Teknologi.

by Mercury Securities

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