TSM Global - Accumulate On Dip

TSM – RM3.23 Stock Code 8842

TSM Global Berhad (TSM) through its subsidiaries, manufactures and supplies wiring harnesses for vehicles and automotive accessories as well as imports, wholesales, designs, installs, and supplies electrical products and accessories.

Recommendation
TSM made a daily Wave C low of RM2.44 in May 2010 with grossly oversold signals. The recent steady price action above the 19 and 50-day moving averages indicates firm upside bias movement. Positive crossovers from its daily CCI, DMI, MACD, Oscillator and Stochastic are deemed as very bullish, indicating further upside potential for TSM.

ACCUMULATE (TECHNICAL)  on dips for  TSM  with its support areas of RM2.68 and RM3.23 and firm upside target areas of RM3.64 and RM3.84. Stop-loss is at RM2.66.

By Maybank IB

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HSL - HOCK SENG LEE BHD : Technical Analysis

Chart wise : In position to go higher ……………
HSL (stock code 6238) had on 10/6/2010 gapped up to cross over the downward sloping trend line extended from day high of RM1.54 (30/4/2010) to connect the other high of RM1.50 (17/5/2010) with a day high of RM1.52 before settled at RM1.50. 

Next Potential Upside Target : With the cross over of the downward sloping trend line, HSL would thus be likely to trade upward with next immediate upside target at RM1.57. 

Entry Level : Risk taking traders may establish buying position at RM1.47 as a pull back is seen likely before the stock makes new attempt(s) to go higher.

Stop Loss Level : Once a buying position is being established, a stop loss at RM1.42 level must be placed for risk capital protection followed by a trailing stop loss strategy.

above: click to enlarge

by Mercury Securities

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FBM KLCI Technical Outlook: Still Consolidating - OSK

The FBM KLCI is now in the vicinity of the middle point of two reversal signals. While the key index is some 40 pts off the low seen last month after creating the “Bullish Engulfing”, the market is still
trading in bearish territory. In the meantime, we still believe that the recent rebound from the low of
1,243.86 pts is a bearish rebound after the major breakdown near the 1,320 pt-level.   

Our view remains the same, i.e. the near-term technical outlook of the FBM KLCI is still firmly bearish. We saw the key index failing to crack above the 1,350 pt-level in three separate attempts over the last three months and the market eventually dipping below the significant support near the 1,200 pt-level. Such market action is usually viewed as a strong reversal signal.

Meanwhile, the market continues to face very tough resistance at the downside gap ranging from the 1,290 pt-level to 1,304 pts. Next resistance remains at the 1,307/1,308 pt-level. To the downside, we
are still looking at the 1,276-1,285 pt-gap area as the immediate support. Another gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.

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FABER– SHORT-TERM BUY ON DIP (TECHNICAL)

FABER– RM2.50  (Stock Code: 1368)

Faber Group Berhad  (FABER) is an investment holding company which provides management services. Through its subsidiaries, it provides hospital support services, hotel management services, develops hotels

 Below: Faber weekly chart: click to enlarge

Recommendation
FABER made a Wave 4 low of RM2.04 in May 2010 with grossly oversold signals. As its stock price trended above the 19-day and 50-day SMA supported by the positive CCI, DMI, MACD, Oscillator and Stochastic indicators, FABER has the potential to trend up on its Wave 5 move towards our resistance and target areas. 

SHORT-TERM BUY (TECHNICAL)  on dips for  FABER  with support areas at RM2.22 and RM2.50 and potential upside target areas of RM2.66 and RM3.08. Stop loss is at RM2.20.

FABER – RM2.50
Our daily and weekly charts indicate that FABER had hit its Wave 4 low of RM2.04 for those 2 time frames. We suggest buying FABER on dips at the support areas indicated. We expect FABER to rise towards its upward target areas of RM2.66 and 3.08 in the medium-term. 

by Maybank Investment Bank

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Dayang Enterprise - Reiterate Buy

Dayang Enterprise Holdings Stock Code 5141 (RM1.81; Buy; Price Target:
RM3.00)
Good things come in large contracts
•  PETRONAS’ RM1.2b maintenance contracts open for tenders
•  Dayang leveraging on its 19-year track record
•  Reiterate Buy, TP raised to RM3.00

Frontrunner for PETRONAS maintenance contracts. Dayang is in a good position to secure some of these contracts, particularly the RM800m SKO&SBO portion. It has a long track record (incumbent of the current SKO&SBO contract) and owns workboats, assets which are required for the job. The tender is expected to close at end June and the award will be in the next 6-9 months. Dayang’s outstanding order book stands at RM1.1b, or 3.5x FY10F revenue cover. PETRONAS’ new direction a catalyst for maintenance industry. PETRONAS aims to boost domestic investments by focusing on improving and prolonging extraction from existing oil wells. This augurs well for the overall industry, especially the hook-up & commissioning and maintenance segments. We understand that a new RM2.0b hook-up & commissioning umbrella contract could be out by the end of the year. Dayang is a pre-qualified contractor for the existing contract, and potential beneficiary of the next.

Maintain Buy; good outlook for maintenance industry.  We believe the market has not priced in the positives from PETRONAS’ investment commitment in local E&P. Our revised RM3.00/share TP, pegged to FY11F EPS, reflects our 5% and 17% earnings upgrade for FY10F and FY11F, respectively, after imputing higher contract wins assumptions (RM600m in 2010; RM1.0b in 2011). Dayang offers strong earnings growth (FY09-11F net profit CAGR of 46.2%), underpinned by a strong order book, superior margins, and new contract wins. It is currently trading at undemanding 6.7x FY11F PE
against sector average of 8.3x.

by HWDBS Vickers

Dayang Enterprise is an investment holding company. The principal activities of subsidiary companies are the provision of offshore topside maintenance services, minor fabrication operations, offshore hook-up and commissioning, and charter of marine vessels relating to the Oil and Gas Industry.

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Warrant trading ideas - MMCCORP-CA

With the Government intent of weaning itself of its reliance on natural gas to fuel power plants, MMC Corporation stands to benefit the most as it is the most experienced in coal IPPs compared to the others (YTL Power International and Tanjong PLC). We  believe most of the 2,000MW of new coal IPPs will go towards  MMC Corporation. MMCCORP-CA’s premium is reasonable at 8.6% and gearing is decent at 6.8x.

by ECMLibra

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Incken - Inch Kenneth : sideway with upward bias expected

Chart wise : Range bound …….
Inch Kenneth (stock code 2607) had on 2/6/2010 crossed over the downward sloping trend line extended from day high of RM0.545 (6/5/2010) to connect the other day high of RM0.505 (20/5/2010) with a day high of RM0.50 before settled at RM0.495.

above: click to enlarge the chart 

Price Direction ….. 
In view of an increase in market participation, the stock could be expected to trade sideways with upside bias in coming day(s). Overhead resistance and support are pegged at  RM0.505  and RM0.465 respectively. 

What to watch for …. 
A turnaround of prices to close above RM0.505 level would see the stock going for RM0.55 target.

by Mercury Securities

Inch Kennecth is involved in investment holding and carries on the business of an oil palm grower. The subsidiary undertakings are engaged in the operations of a tourist resort, retailing building supplies, property development and leasing of properties.

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