– Kumpulan Fima (FIMA MK; RM0.87, BUY) – Uptrend remains intact.
– Wah Seong Corp (WSC MK; RM2.39, BUY) – Broke out of its resistance trend line.
– Gefung Holdings (GFHB MK; RM0.50, SELL) – Double top formation could be in the making.
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Kumpulan Fima (FIMA MK; RM0.87) – BUY
FY10P/E: N/A, P/BV: 0.6x
• The stock penetrated above the first resistance channel yesterday. This is a bullish sign and we anticipate more room to the upside. While intermittent profit taking could take place in early trading today, any consolidation is likely to be light. Next resistance is at RM0.915 and RM0.98.
• MACD has just confirmed its golden cross but RSI is now overbought.
• Traders with higher risk appetite may start to nibble now, while investors with longer horizon should buy during pullbacks, preferably near the RM0.74 support (also its 30-day SMA).
Kumpulan Fima Berhad is an investment holding company. Through its subsidiaries, the company operates pineapple estate, processes and cans pineapple, and cultivates tropical fruits. Kumpulan Fima also has operation in cattle farming, provides transportation services, and trades securities and confidential documents.
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Wah Seong Corp (WSC MK; RM2.39) – BUY
FY10P/E: 13.5x, P/BV: 1.9x
• Wah Seong edged above the resistance trend line to hit a new 52-week high of RM2.48 on intraday trading yesterday. At this juncture, we would keep our positive stance on the stock unless it cracks below RM2.10.
• The technical landscape remains conducive. Its MACD histogram bars continue to gain strength while its RSI is still rising. Next upside target is at RM2.53 and RM2.73.
• We would only turn bearish when the candles fall below its 50-day SMA (RM2.05). Accumulate on weakness but a stop at RM2.02 is a must.
Wah Seong Corporation Berhad is an investment holding company. Through its subsidiaries, the company provides pipe-coating services, manufactures spiral welded steel pipes, distributes building materials, installs metal roofing, produces plastic extrusion structural materials, assembles plastic doors and window frames, and provides industrial engineering services.
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Gefung Holdings (GFHB MK; RM0.50) – SELL
FY10P/E: N/A, P/BV: 0.5x
• On the daily chart, it seems that a double-top formation could be in the making. Twice attempts to cut above RM0.545 failed, suggesting that this may be a strong resistance.
• Technical indicators are showing signs of exhaustion. MACD has staged a negative crossover while its RSI has also retraced from its recent peak. If the RM0.455 neckline support fails to hold, next downside target is at RM0.43 and RM0.375.
• Any rebound towards the RM0.545 level is an opportunity to trim holdings. However, if this resistance is taken out, next target is at RM0.60. Sell into strength.
Gefung Holdings Berhad is an investment holding company. The company, through its subsidiaries, processes, trades, exports and contract workmanship of marble and granite slabs.
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