HARBOUR is an under-researched stock, despite having a strong presence as an integrated logistics service provider in East Malaysia. Our in-house logistic analyst is calling a BUY on the stock, believing that HARBOUR is set to (i) benefit from SCORE and (ii) stage a strong earnings recovery in FY14-15E. (Refer to On Our Radar report dated 17th Feb 2014). From the technical perspective, HARBOUR has confirmed a “Bullish Flag” breakout after pausing for a breather in the past month. The increasing trading volume coupled with the improving readings from the key momentum indicators suggested that HARBOUR is well-positioned to resume its bullish uptrend. From here, we expect follow through buying today, and an eventual move towards the RM2.50 (the “Flagpole” measurement objective). Traders looking to buy into the stock should aim to take profit 3 bids below this targeted level at RM2.47, while also employing a stop-loss at RM1.53 (3 bids below the RM1.56 support level).

 

Source: Kenanga