Bursa Malaysia Stock Watch

Broker's Call - Tue, 26 January 2010

kltrader
Publish date: Wed, 27 Jan 2010, 12:06 AM
kltrader
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* Tomypak Holdings (TOMY MK; RM2.28, BUY) ? Likely another up leg.
* IJM Plantations (IJMP MK; RM2.53, SELL) ? Strong roadblock ahead.
* Integrated Rubber Corporation (IRCB MK; RM1.51, BUY) ? Selling pressure tapering off.
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Tomypak Holdings (RM2.28) ? BUY
FY10P/E: 4.6x, P/BV: 1.1x

? After its recent breakout from its strong resistance channel, Tomypak continued to rally to a new 52-week high of RM2.36 before consolidating at current levels.
? Broker believes the bulls can still hope for one more upleg. If prices can take out the RM2.36 level, there is a high chance that it might inch closer towards RM2.55, RM2.65 and RM2.83. On the flip side, try to keep a stop at its recent low of RM2.15.
? Technical indicators remain positive. MACD is still rising while its RSI has hooked upward again. A fall below its key SMAs at RM1.89-RM1.83 would conclude that this is a fake out.

Tomypak Holdings is an investment holding company. Through its subsidiaries, the company manufactures and trades plastic packaging materials, polyethylene, polypropylene films and sheets, and thermoforming sheets.
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IJM Plantations (RM2.53) ? SELL
FY10P/E: 21.6x, P/BV: 2.1x

? Despite recent rally, the stock failed to penetrate above its resistance trend line (currently at RM2.67). This may suggest that there is a strong roadblock ahead. Once the 50-day SMA cut below its 30-day SMA, expect selling pressure to accelerate.
? Technical landscape is weak. MACD has just confirmed its dead cross while its RSI is dwindling towards the lower band of the neutral zone. Sellers at RM2.67 would undermine any recovery effort.
? Sell into strength is probably the best option here. If RM2.39 is violated, its next supports are RM2.32 and RM2.22. To negate this bearish mode, IJM Plantation needs to inch past RM2.72, which has a low probability.

IJM Plantations is an investment holding company. The company, through its subsidiaries, cultivates oil palm and milling..
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Integrated Rubber Corporation (RM1.51) ? BUY
FY10P/E: N/A, P/BV: 5.1x

? The stock is still consolidating in a triangle. With selling pressure slowly tapering off, we may see a resurgent buying interest over the next few days. Another upswing would push IRCB towards RM1.62 resistance trend line, and probably even RM1.87 next.
? MACD histograms are losing pace but remain positive, while the correction tone on its RSI has also flattened out. All these point to potential upward breakout.
? As the consolidation phase could be prolonged, it is always wise to put a stop at below RM1.39. In case this level is reached, traders should be firm in cutting losses as next downside targets are RM1.32 and RM1.20.

Integrated Rubber Corporation is an investment holding company which manufactures and sells powdered and powder-free examination gloves.

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