Thursday, August 5, 2010

DAIBOCI - CIMB Research sees more downside for Daibochi share price

Stock Name: DAIBOCI
Company Name: DAIBOCHI PLASTIC & PACKAGING
Research House: CIMB

KUALA LUMPUR: CIMB Retail Research has a Sell on Daibochi Plastics and Packaging Bhd after the share price broke below its bearish flag pattern few days ago.

The research house said on Thursday, Aug 5 there was still room to the downside. At RM3.14, it is trading at FY11 P/E of 8.1 times and P/BV: 1.9 times.

CIMB Research said its bearish stance is also supported by the fact that prices have also violated its 50-day SMA.

The research house also said the MACD was about to turn negative while its RSI is also below the 50pts mark. These do not bode well for a strong recovery. Near term gains are likely capped at RM3.18-RM3.24.

'A deeper correction would likely take place if prices breach the 200-day SMA at RM2.93. Next downside supports are RM2.93 and RM2.69. Put a buy stop at RM3.30, just in case,' it said.


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