– Dutaland (DTL MK; RM0.505, SELL) – Downside breakout.
– Land & General (LGH MK; RM0.355, BUY) – Momentum is slowly picking up.
– CBS Technology (CBS MK; RM0.52, SELL) – Still in a consolidation mode.
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Dutaland (DTL MK; RM0.505) – SELL
FY10P/E: N/A, P/BV: 0.4x
• Recently, Dutaland’s share prices came under pressure and the support trend line was violated. Another black candle today is likely to confirm the bearish tone. The downside breakout will drag prices closer to RM0.48 or even RM0.44 next.
• Technical indicators are weak. MACD is poised for a negative crossover while its RSI has also hooked downward. This would undermine any recovery effort.
• Aggressive traders may want to take some profits now. Otherwise, selling on strength is probably the best option here. Resistance is seen at RM0.52 (support-turned-resistance trend line) and RM0.555.
Dutaland Berhad operates palm oil plantations, and develops and invests in real estate.
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Land & General (LGH MK; RM0.355) – BUY
FY10P/E: N/A, P/BV: 1.2x
• The stock stopped bleeding after it hit a recent low of RM0.32. Since then, prices have started to gain strength. Yesterday, it went close to surpass the 30-day SMA and we think buyers are slowly coming back.
• The improving technical landscape suggests that momentum is picking up. MACD has staged a positive crossover and is about the turn positive while RSI is also rising.
• Risk takers may buy now but we prefer to wait for it to cross above its 30-day SMA at RM0.365. Once this level is taken out, next resistance is seen at RM0.375, RM0.39 and RM0.41. Keep a stop near RM0.34.
Land & General Berhad is an investment holding company. The company, through its subsidiaries, manages and develops properties and provides education services.
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CBS Technology (CBS MK; RM0.52) – SELL
FY10P/E: N/A, P/BV: 2.1x
• The stock is still in a consolidation mode and we see a potential downside breakout. If the RM0.515 trend line support fails to hold, selling may be fierce. Thereafter, expect prices to fall towards its next support at RM0.495, and possibly even RM0.46 next.
• Even thought the candles are now hovering near the support trend line, we see no appealing reason to call a buy. MACD has been moving sideways for the past few months while RSI is still falling. No signs of recovery yet.
• We would prefer to stick with the bears’ camp for now. Sell near the RM0.53-RM0.535 resistance. To negate our bearish view, it needs to inch above RM0.565.
CBS Technology Berhad is an investment holding company. The company, through its subsidiaries, provides specialized system integration solutions as well as sells, distributes, and develops software solutions.
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