– Hubline (HUBL MK; RM0.315, SELL) – Hanging by a threat.
– Axiata Group (Axiata MK; RM3.14, SELL) – Limited upside potential.
– Heveaboard (HAVE MK; RM0.375, SELL) – Sell into strength.
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Hubline (HUBL MK; RM0.315) – SELL
FY10P/E: N/A, P/BV: 0.8x
• Hubline broke out of its triangle pattern few days ago but buying momentum failed to carry through. It has since fallen back into the earlier congestion zone.
• The doji formation confirms that buying interest is waning. The deteriorating technical landscape also suggests more downside ahead. Support is weak at RM0.30 (30- & 50-day SMAs) and RM0.285.
• Traders should take profit on rally, especially when it bounces back towards the RM0.325 triangle resistance. A break below RM0.265 would mean that the uptrend since April has ended.
Hubline Berhad is an investment holding company. The company, through its subsidiaries, is involved in investment holding, shipping services, shipping agent, ship owning and chartering and the provision of marine cargo handling services.
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Axiata Group (Axiata MK; RM3.14) – SELL
FY10P/E: 16.4x, P/BV: 1.6x
• Despite our earlier SELL rating on Axiata on Sept 1, the stock held firm in its sideways consolidation trend. However, we still think upside maybe limited for now, with gains likely capped at RM3.27-RM3.35 resistance zone.
• Bearish divergences were seen in both its MACD and RSI indicators. This may suggest that buyers are not ready to push it higher. In fact, there could be some pullbacks for a short breather.
• We still advocate traders to lock in some profits towards the stipulated resistance zone. Immediate support is the 50-day SMA at RM3.05, followed by RM2.86 and RM2.72.
Axiata Group Berhad is a telecommunication company. The company's main activities are the establishment, maintenance, and provision of telecommunications and related services.
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Heveaboard (HAVE MK; RM0.375) – SELL
FY10P/E: N/A, P/BV: 0.1x
• We saw a graveyard doji yesterday, which is typically a reversal pattern in any uptrend. Also, the long upper shadow means that selling pressures are mounting.
• Although there is a minor support at the trend line channel at RM0.365, we think it could be weak. While indicators are still pointing higher price action, we would rather be cautious. Trader looking to buy should wait for clearer signs before jumping onto the bandwagon.
• For now, we still keep to our sell-into-strength call, especially when it edges closer to the RM0.40 and RM0.43 resistances. Once RM0.365 fails to hold, next downside target is at RM0.34 and RM0.32.
Heveaboard Sdn Bhd produces particle board from rubber wood for use in panel furniture, speaker boxes, and doors. The company exports its products throughout the Asia Pacific region. Heveaboard produces ready-to-assemble furniture, and retails particle board and medium density fiberboard.
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