Bursa Malaysia Stock Watch

Broker's Call - Tue, 19 January 2010

kltrader
Publish date: Tue, 19 Jan 2010, 07:52 PM
kltrader
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* Notion Vtec (RM3.42, SELL) ? Sell into strength.
* Genting Malaysia (RM2.89, SELL) ? Chances of an upside breakout are diminishing.
* Evergreen Fibreboard (RM1.68, BUY) ? Potential breakout.
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Notion Vtec (RM3.42) ? SELL
FY10P/E: 9.8x, P/BV: 2.9x

? Recent rally lifted Notion Vtec to a new 52-week high of RM3.52 last Friday. However, the main concern here is its sustainability given that buying interest has faded. A sideways consolidation, or probably a deeper correction, may take place over the next few days if it fails to break out of the resistance channel, currently at RM3.57.
? Although MACD continued to rise, its histograms are losing a bit of momentum. Meanwhile, the RSI has also hooked downward, likely to fall towards the neutral zone.
? The broker think any rebound is a good chance to take profit as gains are likely to be capped at RM3.57-RM3.80. Support is weak at RM3.22 and RM2.98.

Notion VTEC is the investment holding company of the NVB Group. The group is a metal processing company that provides products and services that include designing and developing high precision cutting tools, provides machining services, and designs air chuck assembles.
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Genting Malaysia (RM2.89) ? SELL
FY10P/E: 13.9x, P/BV: 1.7x

? The stock is entrenched in a triangle pattern. Although a breakout either way is still possible, it appears that the potential for an upside breakout is diminishing.
? Indicators remain lethargic. MACD is flattish while its RSI continues to linger around the neutral zone. A violation of the RM2.80 support trend line would likely confirm that the uptrend from March has come to an temporary end, and likely to push its candles lower towards RM2.63 and RM2.30 levels.
? Traders ought to take some profits now or sell into strength as gains are likely capped at RM2.93-RM3.00. It needs to surpass the RM3.02 level to ignite a renewed upward rally.

Genting Malaysia operates a tourist resort in Genting Highlands which includes hotels, restaurants, casinos, and recreational and amusement facilities. Through its subsidiaries, it also develops and leases property, operates leisure and hospitality services.
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Evergreen Fibreboard (RM1.68) ? BUY
FY10P/E: 10.5x, P/BV: 1.3x

? Evergreen is poised to challenge the trend line resistance of its diagonal triangle. A successful breakout will push prices towards RM1.75 and RM1.87 next. Once the 30-day SMA cut above its 50-day SMA, expect follow through momentum to accelerate.
? Our positive stance is also backed by the improving technical landscape. Both its MACD and RSI signal lines are still rising, suggesting that the bulls have an extra edge.
? Risk takers may start to nibble now and hope for an early breakout run. However, broker prefers to jump in during technical pullback, preferably near the RM1.62-RM1.56 support levels to keep risk low. Cut losses if RM1.53 is violated.

Evergreen Fibreboard manufactures medium density fiberboard (MDF), knocked-down wooden furniture, and doors. The Company, through its subsidiaries, also manufactures particle board and MDF and laminates MDF, particleboard, and plywood.

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