Maxis- four CWs issued!!!

Maxis- four CWs issued!!!: "Today is only the 7th day of the listing of Maxis on our exchange. On the 6th day of the listing of Maxis (last Thursday), we saw the listing of four Maxis CWs issued by OSK & CIMB (two CWs for each issuer). I am surprised by the timing & the speed at which these CWs were issued & the number of different CWs issued by each of the issuer. Suffice to say that both OSK & CIMB are comfortable with the reward-to-risk proposition of these issues. They must have formed an opinion that Maxis will not surprise too much on the upside.

Let's look at the CWs below. Basically, we can divide them into 3 categories:
1) very short-term & expiring in 2nd quarter 2010 (Maxis-CA);
2) medium-term & expiring in 4th quarter 2010 (Maxis-CB & Maxis-CC); and
3) long-term & expiring in 1st quarter 2011 (Maxis-CD).

One can say that Maxis-CB & Maxis-CC are comparable as their expiry dates are fairly close to one another and that Maxis-CC is preferred to Maxis-CB as the latter has a higher premium. Overall, the premium for all four CWs are relatively high, especially for an underlying stock that is currently trading at a high PE of 18 times (based on annualized EPS of 30.4 sen for FY2009).


Table: Maxis-CWs main terms & conditions

Technically speaking, Maxis appears to be in a very short-term "bullish price channel" based on the intra-day chart below. From the price channel, we can see that Maxis will have trend line support at RM5.38 & price channel resistance at RM5.53. As long as this price channel remained intact, Maxis price movement for the short-term is likely to be favorable.


Chart: Maxis' 15-min chart as at Nov 30, 2009_4.20pm (Source: Quickcharts)

"

Dubai World Crisis ? The beginning of a DOWNTREND ?

Dubai World Crisis ? The beginning of a DOWNTREND ?: "

For the whole last week trading and before any announcement that Dubai World is facing a financial difficulty, our Malaysian share market has started to move down. Although the Dow Jones Industrial Average manages to create new high but our share market (most of counters) is moving against the real trend.

From here we can see that the share market is getting weaker and weaker and if we check most of charts, what we can see is most the counters are moving slowly towards south and it is very bad. Not only they are moving towards downwards but they also created new low.

Dubai World crisis maybe the beginning of world financial crisis. But still we don't know the level of the damages might hit these regional markets. It is still too early to tell but this crisis might be the turning point or an excuse for the world equities market to move down after been moving up since the beginning of March 2009 until down. It might be the beginning of a downtrend.

Right now 1,230 points will be the next supporting level for FBM-KLCI. If this level been taken out then we would have to wait at the next supporting level at 1,200 points. If 1,200 points also been taken out, then we would have a new beginning of a downtrend.

These few days we might have some mild technical rebound as the prices have been moving down for quite some days already. Just watch out for any opportunity to occour. We might gain something from this technical rebound. Right now it is not a good time to buy for long.

"

KNM's 3Q net profit down 70%

KNM's 3Q net profit down 70%: "

Written by Chong Jin Hun

Thursday, 26 November 2009 19:01

KUALA LUMPUR: Process-equipment maker KNM GROUP BHD []'s third quarter (3Q) net profit fell more than two-thirds from a year earlier as revenue shrank amid a slower global economic landscape.

In a statement to Bursa Malaysia today, KNM said its 3Q net profit was down 69.1% to RM31.92 million from RM103.42 million, while revenue declined 38.6% to RM458.35 million from RM746.2 million.

'The lower performance in this period is reflective of the global economic slowdown and the full effect of intangible-asset amortisation arising from the acquisition of Borsig,' KNM said in the statement.

Its cumulative nine-month net profit fell 20.5% to RM201.79 million from RM253.83 million, while revenue was down 15.5% to RM1.42 billion from RM1.68 billion.

'The board is confident that the group’s results for 2009 will continue to be profitable,' KNM said.

"

Phenomenal surge in Coastal’s profit

Phenomenal surge in Coastal’s profit: "Phenomenal surge in Coastal’s profit

Tags: Coastal Contracts | Kenanga Research

Written by The Edge Financial Daily
Wednesday, 25 November 2009 11:29

COASTAL CONTRACTS BHD [] (Nov 24, RM1.99)
Maintain buy at RM1.95, target price at RM3.68: Coastal Contracts showed a phenomenal third quarter (3Q09) with another record quarter of RM48 million net profit. Nine-month FY09 revenue of RM315.2 million came in at 75% of our forecast but net profit of RM108.7 million was at 97%. Assuming a constant quarter into the year-end, net performance will most likely be 40% ahead of our forecast principally because of strong vessel delivery and higher margins fetched compared to our forecast which we had warned to be conservative.

Quarter-on-quarter, revenue was up 48% on the back of higher vessels delivered. 3Q saw a total of 11 vessels (nine tugs/barges and two offshore support) delivered compared to a mere four (two tugs/barges and two offshore support). No details were given on vessels delivered, but we suspect them to be the normal 5,000 bhp AHTS with market values of between RM45 million to RM50 million each.

Shipbuilding margins remained robust standing at 33.2% (2Q09: 33.4%). FY09 revenue is raised 9.4% with net profit by 39.1% due to a combination of higher margins and lower effective taxes being modelled in. FY10 revenue is also raised by 10.6% with net profit by 38.7% for the same reasons.

The new target price of RM3.68 is based on eight times FY10F (RM2.66 previously) with our buy call maintained. Farsighted management, strong visibility and a strong record of outperforming their guided numbers are key reasons behind our buy call. Trading at a mere 4.2 times 2010F is unjustified compared to the oil and gas sector which is trending at least in the teens.

The outlook for the company is improving substantially after the recent thawing of the credit crisis. Management is once again guiding very positively on the back of rising enquiries given a relatively more stable economic environment not to mention crude oil prices which are currently averaging at the high US$70s to low US$80s per barrel.

Verbal guidance of RM1.4 billion order book should sustain the group right up to 2011 provided there are no cancellations. Farsighted management which had focused their selling to major asset owners including some of the world’s largest offshore support players should help to mitigate cancellation risks.

Based on preliminary estimates, we suspect that the group could have another RM2 billion worth of inventory that could be offered into the market over the next few years. This is not confirmed by management but they did guide that enquiries have been building up very strongly with further sales likely over the course of the next few months. — Kenanga Research, Nov 24


This article appeared in The Edge Financial Daily, November 25, 2009.

"

Construction stocks hit by Dubai World's debt standstill call & Vietnam currency devaluation

Construction stocks hit by Dubai World's debt standstill call & Vietnam currency devaluation: "Two surprising news have hit construction stocks today. They are:

1) Wednesday’s unexpected decision by Dubai World, the Gulf emirate’s largest state-owned conglomerate, to impose a six-month debt standstill has foreign creditors up in arms. Earlier this month, Dubai’s ruler Sheikh Mohammed Bin Rashid Al Maktoum publicly pledged his support for the group and its obligations.

The consequences of the standstill, and possible eventual default, are far-ranging. The repayment of Dubai World’s $4bn Nakheel bond was seen as a litmus test for the emirate’s ability to deal with the $80bn owed by the sovereign and its state-controlled companies. The emirate’s willingness to do this is now in doubt, especially as only an hour earlier it raised $5bn from two state-controlled banks in Abu Dhabi. This was only half what had been expected, but followed $10bn of earlier support from the kingdom’s richer neighbor.

For more, go here.

2) Vietnam announced a 5 percent devaluation of its tightly controlled currency Wednesday, succumbing to pressure for a weaker dong as foreign reserves dwindle.

It was the third devaluation of the dong in less than two years and suggests Vietnam's large trade deficit is making it difficult for officials to keep the currency stable.

For more, go here.

A few Malaysian construction companies have construction projects in Dubai and property development & construction projects in Vietnam. The above development may impact their bottom-line. We have seen some of these stocks being sold off yesterday & today. Gamuda broke below its uptrend line at RM3.00 yesterday (see Chart 1) & IJM broke its uptrend line support at RM4.50 today.


Chart 1: Gamuda's daily chart as at Nov 26, 2009_4.45pm (Source: Quickcharts)


Chart 2: IJM's daily chart as at Nov 25, 2009 (Source: Tradesignum)

"

GenM- sitting on a pile of cash

GenM- sitting on a pile of cash: "Results Update

GenM reported its results for QE30/9/2009, where its net profit increased by 8.8% q-o-q or 5.4% y-o-y to RM359.5 million while turnover increased by 11.1% q-o-q or 9.1% y-o-y to RM1.336 billion.


Table 1: GenM's 8 quarterly results


Chart 1: GenM's 14 quarterly results

Financial Position

GenM is in a very healthy financial position as at 30/9/2009, with current ratio at an excessive 6.0 times and no bank borrowings. It has bank balances of RM3.098 billion, short-term investment of RM2.201 billion and available-for-sale financial assets of RM1.275 billion. If the short-term investment and available-for-sale financial assets can be realized, GenM would be sitting on a cash reserve of RM6.574 billion. This gives each GenM share a cash backing of RM1.11.

Valuation

Based on the annualized last 3 quarters' EPS of 22.5 sen & yesterday closing price of RM2.87, GenM has a PE of about 12.8 times. If the cash backing of RM1.11 per share is deducted from the closing price, then GenM's PE is only 7.8 times. That would make GenM the most attractively-valued large casino in this region.

Technical Outlook

As noted earlier, GenM has broken above its medium-term downtrend line at RM2.85. However, the stock failed to recruit sufficient following to launch into a rally.


Chart 2: GenM's weekly chart as at Nov 26, 2009_9.50am (Source: Quickcharts)

Conclusion

Based on continued good financial performance, attractive valuation and bullish technical breakout, GenM is a good stock for both long-term investment & short-term trading. Despite all the positives, the stock continued to disappoint investors.

"

Broker's Call - Thu, 26 Nov 2009

Broker's Call - Thu, 26 Nov 2009: ".
– Affin Holdings (AHB MK; RM2.50, SELL) – Double top in the making?
– IJM Corporation (IJM MK; RM4.60, SELL) – Gains likely capped at key SMAs.
– Alliance Financial Group (AFG MK; RM2.81, SELL) – Buying interest tapered off.
______________________________________________________________________________

Affin Holdings (AHB MK; RM2.50) – SELL
FY10P/E: 10.1x, P/BV: 0.8x

• A strong rally took place shortly after our Buy rating on 13th Nov. This runup lifted Affin to a new 52-week high of RM2.66 before consolidation started to kick in. The uptrend is probably at its tail-end as recent attempts failed to inch past the RM2.66 level. A double top formation is also seen on its daily chart, further reinforcing our “toppish” view.
• Bearish divergence on its RSI indicator shows that follow through momentum is waning. Its MACD histogram bars also lost a bit of traction.
• Until it breaks above RM2.66, we would prefer to stick with the bear’s camp. Unload on strength would likely be the best option for now. RM2.34 is its neckline support, followed by RM2.19 next.

Affin Holdings Berhad is an investment holding company. Through its subsidiaries, the company provides a variety of financial services, such as commercial banking, property management, share nominee, and trustee management services. Affin Holdings also operates a discount house, manages unit trust, and provides insurance and money broking services.
______________________________________________________________________________

IJM Corporation (IJM MK; RM4.60) – SELL
FY10P/E: 19.2x, P/BV: 0.9x

• IJM broke below its rising wedge channel recently. Although prices seem to be well supported above RM4.48, sellers at its key SMAs are likely to cap gains. Resistance is seen at RM4.70-RM4.74 and RM4.90 next.
• MACD has turned negative now, suggesting the RM4.48 support is weak. RSI also drifted lower, which does not bode well for a recovery tone. It seems that a deeper correction is likely underway.
• Any rebound towards the RM 30-day SMA should be seen as a chance to sell. If the RM4.48 support fails to hold, it would likely confirm that the rally from Dec08 is over.

IJM Corporation Berhad is an investment holding company that provides construction services. The company, through its subsidiaries, operates in property development, provides quarrying services, manufactures and sells premix products, cultivates oil palm, and provides education services.
__________________________________________________________________________

Alliance Financial Group (AFG MK; RM2.81) – SELL
FY10P/E: 16.2x, P/BV: 1.6x

• The breakout from its sideways trend is overall positive but we may see some bouts of profit taking settling in soon. Buying interest has tapered off after hitting a recent high of RM2.95.
• MACD signal line is poised for a negative crossover while its RSI also dwindled. If the RM2.74 minor support gives way, next downside target is at RM2.60 and RM2.50.
• The stock is less appealing at current levels. In fact, selling on strength is preferred due to its deteriorating technical landscape. For investors who wish to buy, values should emerge near its key SMAs.

Alliance Financial Group Berhad is an investment holding company. Through its subsidiaries, the company has operation in commercial and merchant banking, provides financing and nominee services, and invests in property. Alliance Financial also operates and manages a golf resort, manages unit trusts, and provides trustee services.

"

Kurnia oh Kurnia

Kurnia oh Kurnia: "

Overseas ops to grow in double digits, say Kurnia

Kurnia Asia, the country's largest general insurer, said its overseas operations in Indonesia and Thailand will contribute 20% to 25% to the group's top-line in the next three to five years. 'We expect the overseas units to grow at strong double digits in the medium term,' Kurnia Asia director of corporate planning and investor relations, James Tee, told reporters after the group's AGM in Kuala Lumpur yesterday. To meet its goals, plans include expanding the group's distribution channels via bank tie-ups as well as beefing up its agency force. (BT)

Comment: Based on the latest quarterly results, overseas operations in Indonesia and Thailand contributed around 4.8% to the group’s topline. Although Indonesia and its associate in Thailand incurred a net loss of

RM1.07m and RM0.15m respectively, we expect Kurnia’s overseas operations in Indonesia and Thailand to turn positive in the next few years through expansion of its distribution channels via bank tie-ups and beefing up of its agency force. PT Kurnia Insurance Indonesia was acquired in 2007 while Kurnia Insurance (Thailand) Co Ltd was acquired in December 2008. Maintain Buy with a target price of RM1.01. (Lim Mei Ching, Lim.meiching@osk.com.my)

"

Latitud's net profit soared

Latitud's net profit soared: "Results Update

Latitud, which is involved in the manufacturing of wooden furniture, has announced its results for 30/9/2009. Its net profit increased by 72.5% q-o-q or 358% y-o-y to RM11.1 million while its turnover increased by 23.8% q-o-q or 14.8% y-o-y to RM127 million. The increased net profit q-o-q was attributable to "the increase in revenue, effective cost-saving measures undertaken by Group coupled with the improve in efficiency and productivity", while for the y-o-y comparison, the improvement was mainly due to "higher revenue, strengthening of USD, decrease in the prices of certain raw materials and profits achieved by its factories in Malaysia and Thailand". These factors had collectively contributed towards Latitud recording an oversize bottom-line for this quarter (see Chart 1 below). Can Latitud repeat this performance again? We will have to wait & see but I have my doubt.


Table: Latitud's 8 quarterly results


Chart 1: Latitud's 17 quarterly results

Valuation

Based on last 4 quarters' EPS of 37 sen & current price of RM1.47 (as at 4.30pm), Latitud has a PE of 4.0 times. At this PE multiple, Latitud is fairly attractive.

Technical Outlook

Latitud appears to be trapped in a bearish 'price channel'. The channel line would pose resistance to any price rally at RM1.45-50. Earlier this morning, Latitud rallied to a high of RM1.55 before profit-taking set in. As at 4.30pm, it is trading at RM1.47- a gain of 31 sen over yesterday price.


Chart 2: Latitud's daily chart as at Nov 24, 2009(Source: Tradesignum)

Conclusion/Comment

We face a dilemma because we do not know whether the good performance of QE30/9/2009 is a sign of better things to come or an accident? To be sure, we need another quarter of good performance for confirmation. Until then, it is advisable to give due consideration to the chart, whereby a failure to surpass the RM1.45-50 level should lead to quick profit-taking & a sharp pullback for this stock.

"

TM : Core net profit improved 16.5% qoq

TM : Core net profit improved 16.5% qoq: "
Outperform
3QFY09 Results/Briefing Update
- 3Q results missed both our and consensus expectations. The key variances were weaker-than-expected margins and a higher-than-expected effective tax rate. As expected, TM did not declare any dividend.

- 3Q EBITDA fell 7.2% qoq on weaker revenue (-1.3% qoq) and margin compression as EBITDA margin slipped 2.1%-pts to 33.6%. Nevertheless, core net profit improved 16.5% qoq due to:
1) lower depreciation following the revision in estimated useful life of certain network assets; and
2) lower effective tax rate of 23% (excluding exceptional items vs. 2Q09: 50%).

- TM continued to remain tight-lipped with respect to details on the HSBB project. The number of premises passed as at 11 Nov was around 90k and management targets to pass 150k premises by end-2009 and 750k by end-2010. Management does not expect any significant topline contribution from HSBB next year but contribution in 2011 could be more significant as the number of premises passed rises.

- We have cut our FY09-11 net profit forecasts by 6-9.3% following the weaker-than-expected numbers.

- TM’s investment case is its steady dividends it offers investors while its RM2.76bn cash pile as at end-3Q09 provides cover for around four years’ worth of minimum dividend payments. No change to our fair value of RM3.55 (based on required net yield assumption of 5.5%) and Outperform recommendation.

"

Broker's Call - Wed, 25 November 2009

Broker's Call - Wed, 25 November 2009: ".
– Genting Malaysia (GENM MK; RM2.89, SELL) – Strong resistance lies ahead.
– Axiata Group (AXIATA MK; RM3.12, SELL) – Unload on strength.
– AirAsia (AIRA MK; RM1.29, SELL) – Downtrend channel is still holding firm.
__________________________________________________________________________

Genting Malaysia (GENM MK; RM2.89) – SELL
FY10P/E: 14.0x, P/BV: 1.8x

• Genting Malaysia has been challenging the resistance channel over the past few days. This is its third attempts in 5 months, and may influence the price movements over the medium term.
• Previous failed attempts suggest that strong resistance lies ahead. Yesterday’s black candle also shows that traders are taking the opportunity to lock in profits after a decent rally.
• Unless it can break past the recent high of RM2.95-RM3.02 zone, any rebound is a chance to sell. There is a minor support near its key SMAs but a stronger support is at RM2.72-RM2.69 support levels. Sell into strength.

Genting Malaysia Berhad operates a tourist resort in Genting Highlands which includes hotels, restaurants, casinos, and recreational and amusement facilities. Through its subsidiaries, the company also develops and leases property, operates leisure and hospitality services, and provides time share ownership scheme.
__________________________________________________________________________

Axiata Group (AXIATA MK; RM3.12) – SELL
FY10P/E: 16.5x, P/BV: 1.6x

• Axiata fell below its uptrend channel recently but prices were supported at the RM2.90 level. A technical rebound stepped in thereafter and lifted the stock to current levels, a tad above its key SMAs.
• Its technical indicators continue to show subdued patterns. MACD signal line is losing a bit of momentum here while the RSI has hooked down from its recent highs.
• Any rebound towards RM3.17-RM3.26 resistance levels should be seen as an opportunity to sell. Closing below RM3.06, its 30-day SMA would likely push selling pressure into a frenzy mood. Next support is weaker at RM2.90 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.
________________________________________________________________________

AirAsia (AIRA MK; RM1.29) – SELL
FY10P/E: 6.5x, P/BV: 1.4x

• AirAsia is still trapped in a downtrend channel. The correction tone, which started back in Aug, is holding firm, suggesting that its recent run-up is probably coming to a temporary end soon.
• Indicators are showing signs of improvement but may not be sufficient to lift the candlesticks above both its key SMAs and the trend line resistance. Any near-term gains are likely capped at RM1.35-RM1.48.
• Although we do not discount the possibility of another upleg towards the stipulated resistances, we prefer to sell on strength rather than buying at current levels. Closing below RM1.22 would derail the stock towards RM1.15 next.

AirAsia Berhad provides low-cost air carrier service. The company provides services on short-haul, point-to-point domestic and international routes. AirAsia operates from hubs in Malaysia, Thailand and Indonesia.

"

Allianz's top-line & bottom-line continued to rise

Allianz's top-line & bottom-line continued to rise: "
Results Update

Allianz announced its results for QE30/9/2009. Its net profit increased 51.3% q-o-q to RM23.1 million on the back of a 10.7%-increase in turnover to RM632 million. Compared to the previous corresponding quarter, QE30/9/2008, net profit dropped marginally by 1.1% while turnover was up 23.4%. The lower net profit was due to higher effective tax rate of 35% via-a-vis 28% previously, as some expenses were not tax-deductible while some deferred tax assets were reversed.


Table: Allianz's 8 quarterly results


Chart 1: Allianz's 15 quarterly results

Valuation

Based on last 4 quarters' EPS of 51 sen & closing price of RM4.80 yesterday, Allianz is now trading at a PE of 9.4 times. At this multiple, Allianz is fairly attractive.

Technical Outlook

Allianz is now testing its short-term uptrend line at RM4.70. There is a slightly higher probability that we may see a breakdown of this uptrend line as the indicators (MACD, RSI & DMI) are giving negative signals and the 20-day SMA has just crossed below the 50-day SMA. If the short-term uptrend line is broken, the stock may drop to its horizontal supports at RM4.10 & RM4.30.


Chart 2: Allianz's daily chart as at Nov 24, 2009(Source: Tradesignum)

Conclusion

Based on good financial performance & attractive valuation, Allianz is a good stock for long-term investment. The technical outlook is however a bit cloudy now. If the stock can hold above the short-term uptrend line, the good entry level is about RM4.70-80. If that uptrend line is violated, then one may accumulate slowly at RM4.10-30.

"

Tanjong Offshore posts RM10m net loss in 3Q

Tanjong Offshore posts RM10m net loss in 3Q: "

Written by Siti Sakinah Abdul Latif

Tuesday, 24 November 2009 23:48

KUALA LUMPUR: Tanjong Offshore Bhd posted a net loss of RM10.28 million in its third quarter (3Q) ended Sept 30, compared with a net profit of RM5.08 million a year earlier, due mainly to the loss at its UK unit Citech Energy Recovery Systems UK Ltd (CERS).

The company said CERS registered a net loss of £2.70 million (RM15.1 million) in the quarter and had ongoing late delivery charges payments and escalation of costs in its manufacture of waste heat recovery packages.

Revenue for the quarter fell 21.3% to RM154.88 million from RM196.91 million. Loss per share stood at 4.18 sen, compared with earnings of 2.49 sen previously.

'Recently, the group reshuffled the top management positions at CERS so as to have more direct involvement in the day-to-day operational matters. Moving forward, we hope to turn around the losses at CERS and register new sales for the financial year ending 2010,' it said in the statement.

For the nine months to September, net profit plunged 86.6% to RM2.46 million from RM18.35 million in the corresponding period of FY08, while revenue jumped 38.3% to RM513.4 million from RM371.13 million.

The company said that it remained 'cautiously optimistic' on prospects of the oil and gas industry in the international market .

It said despite the losses registered in 3Q 'we remain confident that we are able to overcome short-term losses' as the company continuously enhanced its services to the oil majors in Malaysia and overseas market.

"

Proton reported improved top-line & bottom-line

Proton reported improved top-line & bottom-line: "Results Update

Proton announced its results for QE30/9/2009 where its net profit increased by 50.4% q-o-q or 87.3% y-o-y to RM82.1 million. Its turnover increased by 13.6% q-o-q or 14.0% y-o-y to RM2.104 billion. The improved performance was due to sales of higher margin products. Sales volume was higher than the immediately preceding quarter, QE30/6/2009 but lower than the previous corresponding quarter, QE30/9/2008.


Table: Proton's 8 quarterly results


Chart 1: Proton's 14 quarterly results

Valuation

If Proton can maintain the performance of 1H2009, its EPS for FY2009 would be about 49.6 sen. Based on this & its closing price yesterday of RM3.71, Proton is now trading at a PE of 7.5 times. This compared quite favorably to Tan Chong's PE of about 10.8 times for FY2009 (based on its closing price of RM2.42 & 9-month EPS of 16.88 sen). However, Tan Chong's share price may have factor in potential income from its development of its Segambut land.

Technical Outlook

Proton may have formed a medium-term uptrend line, with support at RM3.65. A bullish breakout above a short-term downtrend line is noted at RM3.70-72, with slight increased in volume traded.


Chart 2: Proton's weekly chart as at Nov 24, 2009_2.40pm (Source: Quickcharts)

Conclusion

Based on improving financial performance & relatively attractive valuation, Proton could be a good stock for medium-term investment. The technical outlook is positive, with support from the medium-term uptrend line & a possible breakout of its short-term downtrend line.

"

Profit Making Idea On PBBANK

Profit Making Idea On PBBANK: "






















Base on last 3 years data PBBANK share price always move up from Dec till next year Feb and after financial report roll out the share will drop due to bonus issued. This patten also happen during end of 2008 where economic is in crisis, so if the same pattern happen again in year 2010 PBBANK may hits RM11.60 before drop to 1st support line at RM10.50. To get maximum profit by this patten we can buy in into PBBANK Structured Warrants with America style and low premium.

Unfortunately available warrant in PBBANK are all Non-Collateralised European Style, it mean the issuer can drop the premium to negative so the only choice we had is buy warrant with low premium. All available warrant in PBBANK is as below:-

1. PBBANK-CJ, Premium: 0% Price: RM0.82
2. PBBANK-CK, Premium: 2% Price: RM0.28
3. PBBANK-CL, Premium: 2% Price: RM0.165

So I think just buy one out of 3 may make profit by end of Feb next year.

"

Broker's Call - Tue, 24 Nov 2009

Broker's Call - Tue, 24 Nov 2009: ".
– Sime Darby (SIME MK; RM8.95, SELL) – Uptrend ended?
– Mudajaya (MDJ MK; RM4.60, SELL) – Double close key reversal
– Supermax (SUCB MK; RM4.07, SELL) – Final rally? Dow Jones 10,450.95
______________________________________________________________________

Sime Darby (SIME MK; RM8.95) – SELL
FY10P/E: 19.3x, P/BV: 2.5x

• Sime fell below its rising wedge pattern support recently but finding some support above the 30-day SMA. The underside of its rising wedge support-turned-resistance is now at RM9.16 would likely keep upside capped. The following resistance is at RM9.40.
• The sell signal on its MACD and is RSI remains in play. Very clear bearish divergence signals on both indicators also support the view that the stock may have topped. Furthermore, the RSI is now at its lowest point in 4- months, which suggests that selling momentum is already on the rise.
• Any rebounds towards the said resistance should be seen as a chance to sell. Closing below RM8.78, its 50-day SMA would likely push selling pressure into a more frenzied mood. Strong support seen at RM6.80 while RM8.20 is a minor support.

Sime Darby Berhad is an investment holding company. The Group's principal activities include plantations, property development, heavy equipment and motor vehicle distribution, and energy and utilities.
________________________________________________________________________

Mudajaya Group (MDJ MK; RM4.60) – SELL
FY10P/E: 9.2x, P/BV: 5.0x

• Mudajaya appears to have formed a bearish wedge pattern. It is still holding above its wedge support but yesterday close saw a double key reversal pattern formed. A sign of warning perhaps.
• The bearish divergence on its RSI indicator is also another warning. If prices close below the RM4.54 wedge support then we would likely see further selling on the stock. The 19th Nov gap of RM4.48-4.55 is now the key support.
• There appears to be a clear 5-wave rally to yesterday’s high of RM4.82. Our sell call is premised on this high that should not be taken out. If prices do take it out, then it could test RM5.00 next. Downside, a break below RM4.48 could push prices towards RM4.13 (16th Nov low) and even RM3.75-3.80 (its MAs).

Mudajaya Group Berhad provides civil engineering and building construction, leases plant and machinery, and operates property management and development. Mudajaya also manufactures concrete products, precast concrete, and building materials.
________________________________________________________________________

Supermax (SUCB MK; RM4.07) – SELL
FY10P/E: 8.1x, P/BV: 2.1x

• Supermax continued to rally to a new 52-week intra-day high of RM4.11 yesterday but we believe that this is the final leg up given that trading volume was been weaker in the current rally since the stock found a short term bottom at RM3.38 (5th Nov).
• Indicators are undoubtedly positive but have potential to form bearish divergence signals just like volume. RSI is now overbought as well. Longer term players ought to start looking for bearish signs to unload.
• Resistance is at RM4.20-4.25 but prices could even head higher. Aggressive traders may want to take a position here but keep stops very tight. We, however, prefer to sell on strength, closer to its resistance, rather than buying at current levels. Closing below RM3.80 would confirm that the uptrend has ended.

Supermax Corporation Berhad is an investment holding company whose subsidiaries manufacture, sell, and export various type of latex gloves around the world.

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Hong Leong raises EPS forecast for UMW

Hong Leong raises EPS forecast for UMW: "Hong Leong raises EPS forecast for UMW
Written by Chong Jin Hun
Monday, 23 November 2009 14:55

KUALA LUMPUR: Hong Leong Investment Bank Bhd has raised its earnings per share forecast for UMW HOLDINGS BHD [] by up to 6% in financial years ending December 2009 and 2010. This is in anticipation that a recovering economic landscape will result in better car sales for the company.

The franchise holder of Toyota cars in Malaysia is also expected to register better financials against the backdrop of a weakening US dollar, besides lower advertising and promotion expenses.

'Higher consumer spending will lift auto earnings and UMW will see margin expansion from depreciating USD,' Hong Leong analyst Jason Saw Koon Khim wrote in a note to clients today.

Saw has also upgraded his recommendation for UMW shares from Sell to Hold with a new target price of RM6.90 based on a higher price to earnings ratio (PER) of 15 times FY10 earnings.

The stock currently trades at a PER of 14 times FY10 earnings compared to FBM KLCI's 15 times, and pure auto stocks's seven times to 12 times.

The valuation premium of UMW compared to pure auto stocks is deemed justified by virtue of UMW's status as a big-cap entity, and the company's diversified operations.

'We think (UMW's) share price has fully priced in the earnings recovery as the stock’s PER valuation has expanded from 11 times to 14 times FY10 earnings.'

http://www.theedgemalaysia.com/business-news/154252-hong-leong-raises-eps-forecast-for-umw.html

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Hai-O hits five-week low

Hai-O hits five-week low: "Hai-O hits five-week low
Tags: Hai-O

Written by Joseph Chin
Friday, 20 November 2009 15:44

KUALA LUMPUR: Shares of Hai-O Enterprise extended their losses in late afternoon trade on Friday, Nov 20, falling to a five-week low of RM6.93.

At 3.23pm, the shares were down 27 sen to RM6.93, the lowest since Oct 15.

On Thursday, the shares fell 46 sen, the biggest one-day loss in recent weeks, as investors started taking profit after the run-up in the share price.

Hai-O is a manufacturer and wholesaler of traditional herbal and pharmaceutical products.

In late October, a local research house increased the indicative fair value for Hai-O to RM8.80 from RM6.80, based on higher price-to-earnings ratio (PER) of nine times CY2010 earnings per share (versus eight times CY2010 earnings per share previously).

This is a 38% discount to the research house's target PER for the consumer sector of 14.5 times due to its smaller market capitalisation as well as low liquidity.

The higher PER target, the research house said, was to reflect increased investor participation in mid-cap stocks,a lower risk premium and improved market sentiment.

http://www.theedgemalaysia.com/business-news/154142-hai-o-hits-5-week-low.html

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Coastal Contracts profit doubles

Coastal Contracts profit doubles: "Coastal Contracts profit doubles
Tags: Coastal Contracts

Written by Joy Lee
Tuesday, 24 November 2009 10:33

KUALA LUMPUR: COASTAL CONTRACTS BHD []’s net profit more than doubled for the third quarter ended Sept 30, 2009 on the back of a strong performance from its shipbuilding and ship repairs division.

Its net profit surged to RM47.95 million from RM22.52 million a year earlier while revenue jumped 113% to RM140.08 million from RM65.93 million previously. Subsequently, earnings per share rose to 13.31 sen from 6.39 sen. No dividend was declared for the quarter under review.

The shipbuilding and ship repairs division booked a higher revenue of RM132.8 million in the current quarter compared with RM60.4 million in the corresponding quarter a year earlier, an increase of 120%, due to more vessel deliveries in the current quarter. Its vessel chartering division recorded a 33% rise in revenue to RM7.3 million from RM5.5 million a year earlier.

“The improved performance was attributed to a combination of greater tonnage transported and higher fleet utilisation,” it said.

Year-to-date, the group said its net profit of RM108.69 million, which rose 66.3% year-on-year, has already surpassed 2008’s full-year profits of RM96.8 million. Its revenue for the cumulative nine months increased 33.5% to RM315.18 million from RM236.15 million previously.

The group said the steady resurgence of crude oil prices had caused previously shelved exploration and production projects to return on the back of revival in capital expenditures by oil companies.

The International Energy Agency has recently revised up its forecast for oil demand for 2010. As at 8.20pm yesterday, crude oil added 91 cents or 1.2% to US$78.38 (RM264.92) per barrel.

“In the light of these positive developments, the near-term outlook for demand of offshore support vessels (OSVs) is expected to improve, although a full-blown recovery may still be far from the horizon. In any event, Coastal group’s revenue and earnings will continue to benefit from the strength of its vessel sales order book, providing visibility for close to two years ahead. Coupled with a healthy balance sheet with low level of borrowings, Coastal group will continue to operate from a position of strength,” it said.

Moving forward, it said the group had increased optimism of securing new contracts to add to its vessel sales order book, especially in the OSVs category, as well as reaping recurrent returns from its chartering division through optimal deployment of the group’s fleet in energy transportation and in various oil and gas support services.



This article appeared in The Edge Financial Daily, November 24, 2009.

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WCT : 9MFY12/09 net profit declines 15% yoy

WCT : 9MFY12/09 net profit declines 15% yoy: "
Underperform

3QFY09 Results

- 9M net profit came in within expectations at 72-78% of full-year market consensus and our forecast.

- 3Q construction EBIT margin eased further to 3.7%, from 5.8% and 8.3% registered in 2Q and 1Q, we believe, as work progress on low-margin jobs, i.e. New Doha International Airport (NDIA) and AEON mall in Melaka, further gathered momentum during the quarter, while the high-margin Abu Dhabi F1 Circuit was already at the tail-end.

- Maintain Underperform. Fair value is RM1.99.

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