• Negative news likely priced in. Brahims share prices tumbled from RM1.61 inearly Nov 14 to a low of RM0.81 on 5 Mar after releasing a set of sluggish 4Q14 results as well as its agreement to less rosy interim terms with its biggest customer, MAS.
• However, share prices recovered 4 sen to end at RM0.86 last Friday amid an article in Edge Malaysia that Brahims is in talks to acquire a stake in TCRS Restaurants S/B (the owner of the Chicken Rice Shop, Sweet Chat and Dubu- Dubu in Malaysia) in a bid to reduce its dependency on catering business. In a reply to Bursa Malaysia query, Brahims said it is currently in negotiation with a local F&B company but the terms and conditions of the proposed acquisition have yet to be agreed upon. It also highlighted that the deal may or may not materialise.
• Poised to retest RM0.93-RM1.00 zones amid signs of bottom up. Technically, Brahims is extremely oversold after recent slump in share price. However, the formation of bullish harami and bottoming up technical indicators could signal further relief rally this week, if the hourly mid Bollinger band near RM0.93 is taken out decisively. Further upside targets are RM1.00 (23.6% FR) and RM1.12 (38.2% FR).
• Supports are situated near RM0.83 and RM0.80. Cut loss at RM0.78.

Source: Hong Leong Investment Bank Research - 10 Mar 2015