Bursa Malaysia Stock Watch

Broker's Call - Tuesday, 02 February 2010

kltrader
Publish date: Tue, 02 Feb 2010, 07:47 PM
kltrader
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* Pentamaster Corporation (RM0.52, SELL) ? Sustainability is in doubt.
* RCE Capital (RM0.69, SELL) ? Gains are likely capped.
* Genting Malaysia (RM2.78, SELL) ? Support channel violated.
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Pentamaster Corporation (RM0.52) ? SELL
FY10P/E: N/A, P/BV: 0.9x

? The stock?s uptrend was challenged last Friday as it violated the support channel. Although we do not rule out the possibility of a rebound, broker's concern is its dwindling volume. They are doubtful that prices could swing up strongly in the near term.
? Indicators are showing signs of exhaustion, suggesting that this uptrend may be near its tail end. MACD is poised for a negative cross while its RSI has also retraced from its recent peak.
? Use any rebound to sell into strength as there is a cluster of resistances at RM0.55-RM0.57. On the downside, support is seen at RM0.49, followed by RM0.475 and RM0.45 next.

Pentamaster Corporation is an investment holding company. The company, through its subsidiaries, manufactures automated and semi-automated machines and equipment, designs and manufactures precision machinery components, as well as assembles and installs computerized automation systems and equipment.
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RCE Capital (RM0.69) ? SELL

FY10P/E: 6.8x, P/BV: 1.5x

? The stock is gyrating in a triangle. Prices are sitting above its key SMAs. The support trend line (at RM0.64) is a critical level. A fall below RM0.615 would likely confirm that its uptrend has come to a temporary end.
? Near term gains are likely capped at RM0.73-RM0.745. This is evidenced from the easing technical landscape. MACD is becoming flattish while its RSI has hooked downward again.
? As previous attempts have also failed to surpass the resistance trend line, brokers think it would be an uphill task this time around too. Therefore, traders should do well unload on strength, preferably near the stipulated resistance zone.

RCE Capital is an investment holding company which provides management services. Through its subsidiaries, the company invests in property, provides information technology, financial administrative, loan financing, broadcasting and advertising media services.
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Genting Malaysia (RM2.78) ? SELL
FY10P/E: 13.3x, P/BV: 1.6x

? Genting Malaysia broke below the support channel last Friday. Broker see this as a bearish sign as it would also mean more downside ahead. Unless it can swing up above the RM2.92 level soon, we would prefer to stick with the bears? camp.
? The daily indicators also look weak at this juncture. MACD has confirmed its dead cross while its RSI is falling towards the lower band of the neutral territory.
? There could be some buying support today, but broker see these as opportunities to take profits. There is a minor support at RM2.76. If this level fails to hold, RM2.69 and RM2.57 would be its next targets.

Genting Malaysia operates a tourist resort in Genting Highlands which includes hotels, restaurants, casinos, and recreational and amusement facilities. Through its subsidiaries, the company also develops and leases property, operates leisure and hospitality services, and provides time share ownership scheme.
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