– Eastern Pacific Industrial Corp (EPIC MK; RM1.59, BUY) – Likely to extend gains.
– Perisai Petroleum Teknologi (PPT MK; RM0.615, BUY) – The breakout from SMAs is positive.
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KNM Group (KNMG MK; RM0.805) – BUY
FY10P/E: 9.4x, P/BV: 1.7x
• The stock has broken out of its downtrend channel. Yesterday’s push above its 50-day SMA is another positive. Although consolidation would likely take place at current levels, we believe it is a healthy based-building pattern. Next up leg would likely take place after the MACD turns positive.
• Its indicators are showing signs of improvement. MACD has staged a positive crossover while RSI is also rising. Resistance is at RM0.845 and RM0.895.
• Traders may start to nibble to as low as RM0.765 (30-day SMA). However, always keep stop tight at below RM0.69.
KNM Group Berhad is an investment holding company. Through its subsidiaries, the company designs, manufactures, and maintains process equipment, pressure vessels, heat exchangers, skid mounted assemblies, process pipe systems, storage tanks, specialized structural assemblies and module assemblies for the oil, gas and petrochemical industries.
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Eastern Pacific Industrial Corp (EPIC MK; RM1.59) – BUY
FY10P/E: 7.0x, P/BV: 0.9x
• EPIC is gyrating in a symmetrical triangle formation. As this can be seen as a continuation pattern, we believe there is more room to the upside. After this consolidation, the stock may rise towards the RM1.66 and RM1.74 resistance levels.
• Both MACD and RSI are showing lacklustre trends. However, buying momentum would likely pick up after the candles edge above the key SMAs.
• Any pullback is an opportunity to buy. We may be wrong however if the candles eased below RM1.48. Therefore, a stop below RM1.46 is a must.
Eastern Pacific Industrial Corporation Berhad is an investment holding company. The company, through its subsidiaries, manages petroleum supply base for oil producers, provides and maintains port services and facilities, manages sludge, and handles cargo. Eastern Pacific also provides property development.
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Perisai Petroleum Teknologi (PPT MK; RM0.615) – BUY
FY10P/E: N/A, P/BV: 1.7x
• Perisai cut above its key SMAs yesterday. After recent consolidation, it seems that the stock is poised for a strong recovery mode. Immediate resistance is at RM0.645, followed by RM0.665 next.
• Technical landscape looks appealing. MACD has turned positive while its RSI is still neutral.
• Traders with greater risk appetite may want to buy during pullbacks. Support is seen at RM0.565-RM0.55. Cut loss however when it breaks below RM0.52.
Perisai Petroleum Teknologi Berhad is an investment holding company. The company, through its subsidiaries, manufactures, supplies, commissions, and installs corrosion control products as well as inspects and maintains pipes, risers, and heat exchangers for oil and gas industry.
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