• Tadmax Resources Berhad is engaged in timber, construction, developments, drainage construction, reclamation, property development, turnkey contracting and financing project developments. Healthcare, financial services and food manufacturing are the latest additions to the business.
• On weekly chart, upward trend in share prices began to emerge in Feb 2016 after the downtrend was taken out (which started in Feb 2014 and ended in Feb 2016). Weekly oscillators (MACD, RSI and Slow Stochastics) show further bullish momentum for the time being. Reinforced by latest share price trending above all SMAs, the new uptrend is expected to persist. In the immediate term, a trading buy signal was triggered when share price penetrated above resistance of RM0.365 yesterday on high trading volume.
• Given the strong buying interests in the stock, we are of the view that share price is expected to gain further buying momentum towards RM0.40, RM0.425 and RM0.45. Support at RM0.365 and RM0.36 with cut loss below RM0.35.
• Attractive risk to reward ratio with 20% upside against 6.7% downside. All in, we see an attractive risk to reward ratio for investor with a theoretical entry price of RM0.375 given that the downside to the cut loss zone of RM0.35 is 2.5 sen (-6.7%) while the upside to the LT price objective of RM0.45 is 7.5 sen (+20%).

Source: Hong Leong Investment Bank Research - 8 Mar 2016