Bursa Malaysia Stock Watch

Broker's Call - Wed, 03 February 2010

kltrader
Publish date: Thu, 04 Feb 2010, 11:05 AM
kltrader
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* Biosis Group (RM0.755, SELL) ? Buying losing steam.
* AE Multi Holdings (RM1.35, SELL) ? Sell into strength is likely the best option.
* Octagon Consolidated (RM0.31, BUY) ? Potential breakout run.
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Biosis Group (RM0.755) ? SELL
FY10P/E: N/A, P/BV: 1.0x

? Biosis has been rising in a parabolic manner over the past few days and this drew our concerns of a potential end of this uptick. The formation of long upper shadow candles is also worrying as it may signal that buyers are turning less aggressive now.
? Its January?s high of RM0.81 is likely to keep the bulls at bay. If prices fail to break out this resistance, then there is a high probability that if may pullback towards the RM0.70 support.
? Broker's bearish stance is also reinforced by the easing technical landscape. MACD histograms are starting to lose some momentum while RSI has also moved downward. If RM0.70 gives way, next target is RM0.625.

Biosis Group is an investment holding company. The company, through its subsidiaries, manufactures and trades personal care, make-up preparation, professional skin care, hotel complimentary items, and health care products.
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AE Multi Holdings (RM1.35) ? SELL
FY10P/E: N/A, P/BV: 4.3x

? AE Multi once again tested the resistance trend line of the rising wedge pattern. This may signal that the uptrend is losing a bit of pace here. Broker see any strong rebound as an opportunity to lock in profits. Resistance is seen at RM1.45-RM1.53.
? Technical landscape is showing some signs of weariness. Similar to Biosis, its MACD is losing momentum while the RSI has also retraced from the recent peak.
? Although broker cannot rule out the possibility of further uptick, broker think the bulls need to be more alert. There is a minor support at RM1.29, while a break below the RM1.20 support trend line would likely confirm that the trend has reversed.

AE Multi Holdings is an investment holding company. Through its subsidiaries, the company manufactures printed circuit boards and provides waste water treatment facilities and waste water recycling services.
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Octagon Consolidated (RM0.31) ? BUY
FY10P/E: N/A, P/BV: 0.4x

? This stock is only suitable for risk takers. Our strategy here is to try to ride the potential breakout run. As the 30-day SMA is about to cut above its longer term 50-day SMA, there is a slim chance that Octagon may rise towards the next resistance at RM0.33. And if this level is taken out too, then RM0.35 and RM0.39 will be its next targets.
? Indicators also show that momentum is slowly picking up. MACD signal line has staged a positive crossover while its RSI is rising towards the upper band of the neutral zone.
? Despite our bullishness, it is important to keep a stop at RM0.295 or RM0.275 (also its 30-day SMA) depending on one?s risk tolerance. Accumulate on weakness is probably the best option.

Octagon Consolidated is an investment holding company. The company, through its subsidiaries, manufactures and trades customised industrial paints, inks, and chemical products.
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