Broker's Call - Wed, 06 January 2010: ".
– Gamuda (GAM MK; RM2.90, BUY) – Momentum is picking up.
– Muhibbah Engineering (MUHI MK; RM1.12, BUY) – Broke out of its downtrend channel.
– Sunway Holdings (SGW MK; RM1.35, BUY) – Penetrating resistance channel.
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Gamuda (GAM MK; RM2.90) – BUY
FY10P/E: 18.1x, P/BV: 1.8x

• Gamuda underwent a consolidation phase over the past few months. However, sentiment has changed at the beginning of 2010 and the bulls have since taken over.
• The candles swung past its 30-day SMA and are now charging towards the 50-day SMA. The breakout is positive as it would likely lift prices towards the RM3.03 resistance, and possibly even the Nov’s high of RM3.21.
• Any pullback towards the 30-day SMA is an opportunity to buy. Keeps stop tight at its 30-day SMA (at RM2.76) or the lower end of the triangle support (at RM2.57) depending on one’s risk appetite.

Gamuda is an investment holding and civil engineering construction company. Through its subsidiaries, the Company provides earthwork construction, manufactures and supplies road surfacing materials, and operates quarry and road laying projects. Gamuda also has operation in hiring and rental of plant and machinery, develops properties, and manufactures and sells paper.
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Muhibbah Engineering (MUHI MK; RM1.12) – BUY
FY10P/E: 6.1x, P/BV: 1.0x

• Muhibbah broke out of its downtrend channel as well as its key SMAs this week, indicating more upside ahead. There is a cluster of resistances near RM1.19-RM1.24 while further breakout would push the stock towards RM1.35 next.
• MACD has staged a positive crossover while its histograms are also rising. Meanwhile, RSI is a tad below the 70 overbought level.
• Risk takers may start to nibble now but always keeps stop tight at RM1.08. Any violation below this resistance-turned-support trend line would be bearish.

Muhibbah Engineering (M) is an investment holding company which provides civil, marine, and structural engineering contract works. Through its subsidiaries, the Company also manufactures engineering products and distributes and markets construction materials. Muhibbah also repairs and builds ship, produces and leases cranes, trades computer hardware, and invests in properties.
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Sunway Holdings (SGW MK; RM1.35) – BUY
FY10P/E: 7.4x, P/BV: 1.0x

• Sunway Holdings also bounced off strongly from its recent lows of RM1.16 to cut above its key SMAs. It is now gathering strength to test the downtrend channel resistance. If prices can swing and stay above RM1.37, the nearterm outlook is promising.
• MACD is about to turn positive while its RSI is climbing towards the upper band of the neutral zone. These are signs of potential upside for the stock.
• Traders should wait for a breakout before jumping onto the buying bandwagon. Once the RM1.37 level is taken out, next resistance is at RM1.41, followed by RM1.48 next. Place a stop at RM1.27 (also its 30-day SMA) to prevent bull traps.

Sunway Holdings is an investment holding company. Through its subsidiaries, the Company has operation in constructing civil and building works and contracting in mechanical, electrical, and piling works. The Company also develops and invests properties, provides financial services, manufactures vitrified clay pipes and concrete products, and trades building materials.
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