Broker's Call - Thu, 07 January 2010: ".
* Perisai Petroleum Teknologi (PPT MK; RM0.595, BUY) – Breakout-run likely to persist.
* KPS Consortium (KPS MK; RM0.25, BUY) – Triangle breakout.
* Scomi Group (SGB MK; RM0.505, BUY) – Likely to re-rate soon.
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Perisai Petroleum Teknologi (PPT MK; RM0.595) – BUY
FY10P/E: N/A, P/BV: 1.6x

• Perisai broke out of the bullish descending wedge pattern yesterday. This is likely an indication of more upside ahead. The recent run-up also took out its key SMAs, which is another plus point.
• If the candles can hold above the resistance-turned-support channel, its medium-term outlook looks promising. The breakout-run, if continues, would push prices towards RM0.63, and possibly even RM0.665 next.
• Our positive stance is backed by the improving technical landscape. MACD has turned positive while RSI is also rising. However, we prefer to get in during technical pullbacks as RSI is now overbought. Keep stop tight at RM0.565.

Perisai Petroleum Teknologi 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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KPS Consortium (KPS MK; RM0.25) – BUY
FY10P/E: N/A, P/BV: 0.3x

• The stock has been consolidating in a sideways trend over the past few months. Looking at the daily chart, we believe it may have garnered enough strength to swing higher from here.
• KPS broke out of its RM0.24 trend line yesterday on strong volume, which was a strong resistance previously. Once a base-building pattern is formed, expect prices to move closer to the next resistance at RM0.27 and RM0.30.
• MACD line has returned to the black, indicating that buying interest is picking up. A slight setback is its overbought RSI. Traders may place stop at below RM0.24 or RM0.21 depending on the risk profile.

KPS Consortium is an investment holding company. Through its subsidiaries, the Company manufactures and trades paper products, provides management services, and trades stationery and general household products. KPS Consortium also distributes wooden doors, plywood and manufactures timber doors.
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Scomi Group (SGB MK; RM0.505) – BUY
FY10P/E: 5.8x, P/BV: 0.5x

• Scomi is still entrenched in a downtrend channel. However, it appears that the stock may re-rate soon, if the candles can swing past the resistance channel (currently at RM0.525).
• Yesterday, it was testing the 50-day SMA. A successful breakout which could be seen as a prelude of more upside ahead. Once this level is taken out, RM0.565 and RM0.585 are the next targets.
• MACD has just confirmed its golden cross while its RSI is rising towards the upper band of the neutral zone. Risk takers may nibble now and ride on the potential breakout-run, but always put a stop at RM0.48, its 30-day SMA.

Scomi Group is an investment holding company. The Company, through its subsidiaries, sells drilling mud and chemical products, provides drilling fluids materials, equipment, and services, manufactures and fabricates road transport equipment and material handling equipment, operates marketing agent for road transport equipment, and provides leasing on motor vehicles.
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