BUY Call:-
* Jaks Resources (RM0.73, BUY) – Potential breakout.
* Success Transformer Corp (RM1.29, BUY) – New short term run underway.
* Three-A Resources (RM1.90, BUY) – Buy on weakness.
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Jaks Resources (RM0.73) – BUY
FY10P/E: N/A, P/BV: 0.7x

• Jaks bounced off strongly from its recent lows of RM0.56 to cut above both its 30-day and 50-day SMAs. Currently, it is also testing the downtrend resistance channel. A breakout run is likely to lift prices towards RM0.765, and possibly even RM0.84 next.
• Technical indicators remain conducive for the bulls. MACD has cut into the positive territory while the histograms are still gaining strength. Its RSI is also above the 50-neutral zone.
• Risk takers may want to buy now and ride the potential breakout run. However, as downside risks still prevail, it is crucial to keep stop tight at around RM0.695.

Jaks Resources is an investment holding company. The company, through its subsidiaries, provides water supply construction projects such as reservoirs, water reticulation works, and pipe laying. Jaks Resources also manufactures steel pipes.
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Success Transformer Corp (RM1.29) – BUY
FY10P/E: 6.5x, P/BV: 1.2x

• The stock broke out of its bullish wedge pattern in the final week of Dec and has been holding above it since then. Yesterday’s long white marubozu suggests that a new short term uptrend has begun.
• Rising MACD and RSI calls for more upside for the stock in the days ahead. A push past the previous Oct high of RM1.36 to new 52-week highs is likely on the cards. The next trend line resistance is around the S$1.42 level.
• This view is premised on the key support of RM1.16 is not breached. The 50-day SMA at RM1.19 would also offer some support. Buy on pullback may turn out to be wise choice. Success Transformer Corp, through its subsidiaries, manufactures and trades transformers and other products. The company's other products include automatic voltage stabilizers, power line conditioners, energy saving lumen regulators, control gears, and industrial lighting products.
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Three-A Resources (RM1.90) – BUY
FY10P/E: 27.5x, P/BV: 6.5x

• On the daily chart, the stock is entrenched in a rising wedge pattern. Yesterday’s rally once again proven that buying near the support trend line (currently at RM1.61) is likely a better entry point.
• Underlying tone remains positive, suggesting that the uptrend is still intact. However, as RSI is now overbought and there is a possible bearish divergence on its MACD, traders should wait for technical pullback before jumping onto the buying bandwagon.
• Its 30-day SMA is about to cut above the 50-day, which is a bullish sign. Resistance is seen at RM2.00-RM2.05 (trend line resistance). Place a stop at RM1.77 to prevent bull traps.

Three-A Resources Berhad is an investment holding company. The company, through its subsidiaries, manufactures liquid caramel, caramel color, NFV, HVP, soya protein sauce, glucose syrup, and maltose syrup.