BUY Call:-
* Kinsteel (RM1.02, BUY) – An interesting prospect.
* Sino Hua-An International (RM0.55, BUY) – Bullish breakout.
* Lion Diversified Holdings (RM0.505, BUY) – A short term run underway.
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Kinsteel (RM1.02) – BUY
FY10P/E: 10.6x, P/BV: 1.3x

• The stock consolidated in a 8-month triangle pattern but yesterday’s long white candle pushed prices above the triangle resistance of RM0.98. The broker expects more follow through buying in the coming days as volume on the breakout was heavy.
• Technical indicators remained conducive for more upside. The overbought RSI may hinder the upside but it is likely temporary.
• Risk takers may start to buy now but put a stop below RM0.98. There is a good chance that the stock can test and take out its old high of RM1.10 soon. The next resistance is seen at RM1.17. If strong buying momentum continues to flow through, it could even reach RM1.30, a target based on the measurement of the height of its previous triangle.

Kinsteel Berhad is an investment holding company. The company, through its subsidiaries, manufactures and trades steel bars and related products. Kinsteel also operates in property investment.
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Sino Hua-An International (RM0.55) – BUY
FY10P/E: 7.1x, P/BV: 0.8x

• Hua-An has also consolidated in a 7-month consolidation triangle, quite similar to Kinsteel above. The only difference being that Kinsteel broke out a day earlier while Hua-an only took out its resistance at RM0.545 yesterday.
• This breakout could lift the stock to test the June high of RM0.59 in the nearterm. A breakout above that level could potentially send the stock to RM0.65, again a target based on the triangle measurement.
• Technical indicators are progressing well and supportive of a breakout. Traders could buy now in anticipation of the breakout but remember to keep a stop below RM0.525. For those who are more risk averse, a stop could be place below RM0.495, its 50-day SMA.

Sino Hua-An International Bhd., through its subsidiary, is principally involved in the production and sale of metallurgical coke and its by-products, namely coal gas, tar, crude benzene, and ammonia sulfate. The Company's main product metallurgical coke is a raw material used in the manufacture of steel..
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Lion Diversified Holdings (RM0.505) – BUY
FY10P/E: N/A, P/BV: 0.2x

• Lion Diversified has recently breached its bullish wedge resistance. It formed a small base above it and yesterday’s white candle likely marks the start of a new short term run.
• Barring a deep correction to below RM0.445, its 50-day SMA, prices could potentially climb to RM0.56 first. RM0.635 is the next level to look out for if the first resistance breaks, where there is a cluster of resistance.
• With technical momentum still with the bulls, prices could continue on higher. However, keep a stop below S$0.445, just in case.

Lion Diversified Holdings Berhad is an investment holding company. The Company, through its subsidiaries, operates department stores and supermarkets. Lion Diversified Holdings also brews, sells, and markets beer and non-alcoholic drinks, operates in property management and development, and manufactures computer and related products.