– Dayang Enterprise (DEHB MK; RM1.81, BUY) – Uptrend is still intact.
– Dialog Group (DLG MK; RM1.34, SELL) – Strong resistance lies ahead.
– Petra Perdana (PETR MK; RM1.67, SELL) – Gains capped by 50-day SMA.
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Dayang Enterprise (RM1.81) – BUY
FY10P/E: N/A, P/BV: 1.9x

• Dayang has been well-supported by its 50-day SMA over the past few months. From its daily chart, it appears that the rally since end-Nov is still intact. As long as the support trend line holds steady, we believe this uptrend still has legs.
• Both MACD and RSI signal lines are still rising, suggesting that the underlying tone is still positive. Immediate resistance is seen at RM1.90, followed by RM2.05 next.
• Despite our bullishness, always put a stop at the support line (currently at RM1.69). If this level is violated, selling could be fierce as next support is seen at RM1.58 and RM1.51. Buy on weakness.

Dayang Enterprise Holdings., through its subsidiaries, provides offshore maintenance services. The company also offers minor fabrication operations, offshore hook-ups, and commissioning and chartering of marine vessels to the oil and gas industry.
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Dialog Group (RM1.34) – SELL
FY10P/E: 16.5x, P/BV: 4.0x

• Dialog has been gyrating in a triangle formation over the past few weeks. Despite numerous attempts, prices failed to move above the resistance channel. The black candles formed also indicate that selling pressure has picked up. Near-term gains would likely be capped at RM1.40-RM1.46.
• Indicators are showing some signs of exhaustion. MACD histogram bars are losing a bit of momentum here while its RSI has also dwindled a tad lower.
• The broker thinks traders ought to take profits now or sell on rebounds. Prices are expected to ease towards RM1.28 (Dec09 lows) and RM1.20 next. Breaking below these levels would likely confirm that a deeper correction is in place.

Dialog Group is an investment holding company. The Company, through its subsidiaries, provides engineering, procurement, construction and commissioning services, and plant maintenance services. Dialog also retails petroleum to oil, gas, and petrochemical industries, as well as markets specialty chemical and equipments.
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Petra Perdana (RM1.67) – SELL
FY10P/E: 10.1x, P/BV: 0.9x

• Petra took a sharp dive in mid-Nov before bouncing back to current levels. The rebound took off at the RM1.20 lows and is now lingering near the 38.2% FR levels.
• Last Friday’s pullback from the 50-day SMA (at RM1.82) suggests that strong resistance lies ahead. Further downward drift is likely to drag prices towards RM1.58 and RM1.45 next. A break below its 30-day SMA would likely indicate that a deeper correction is underway.
• Indicators painted a mixed picture. While MACD is still rising, its RSI has hooked downward. Traders should do well selling into strength as upside is likely capped at RM1.72-RM1.83 in the near-term.

Petra Perdana provides engineering and maintenance services, packaging, fabrication and supplies engineered equipments. The Company also has operation in information technology services for oil and gas, power generation and other heavy industries.