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Tenaga Nasional (TNB MK; RM6.09) – SELL
FY12P/E: 11.1x, P/BV: 1.1x
• Tenaga appears to be forming a triangle and since triangles are usually
continuation patterns, the stock is likely to see more weakness once this
consolidation pattern ends.
• Technical landscape is negative as its MACD remains below the zero line
while its RSI failed to clear above the 50-60pts mark. Prices also failed to
clear the 50-day SMA hurdle. .
• Traders ought to sell now with a stop placed above RM6.29. A break below
RM5.95 warrants a further sell as prices could potentially fall towards
RM5.40-5.50, based on the height of the triangle.
Tenaga Nasional Berhad transmits, distributes, and sells electricity under
license issued by the Director General of Electricity Supply. Through its
subsidiaries, the company manufactures, sells and repairs transformers and
switchgears. Tenaga Nasional also provides project management and
consultancy, engineering works and energy project development services
Sarawak Cable (SRCB MK; RM1.30) – SELL
FY12P/E: N/A, P/BV: 1.5x
• Sarawak Cable violated its wedge support few weeks ago. Since then,
prices have been hovering in a consolidation mode. Last week, the bulls
tired to make a comeback but the support-turned-resistance channel proved
a tad too strong.
• The failed attempt suggests that the bears have the upper hand here.
Hence, our strategy is to unload on strength, preferably near the RM1.34-
RM1.39 resistances.
• Technical landscape looks subdued. MACD histogram bars are losing steam
while RSI has also hooked downward. Put a buy stop at RM1.41.
Sarawak Cable Bhd manufactures power cables and wires. The company
also manufactures hybrid power inverters. Sarawak Cable's power cables
include low voltage multicore power cables and wires.
Tanco Holdings (TANC MK; RM0.355) – BUY
FY12P/E: N/A, P/BV: 0.7x
• Tanco appears to be fomring a triangle, whcih means that prices could
continue sideways for a while longer. Friday, it closed above the 30-day
SMA, which is positive for the stock. .
• Its MACD is recovering after testing the zero line while its RSI also held
above the 40-pts mark. Both suggest that the bulls still have the upper hand.
• One can apply either one of the strategies mentioned here. One can go long
now with a stop below RM0.32. One can also wait for a pullback before
getting in with a stop below the recent low of RM0.29. A breakout above
RM0.395 would lift prices towards RM0.465 and S$0.50-0.52.
Tanco Holdings Berhad is an investment holding company. The company,
through its subsidiaries, operates in property development and investment,
hotel, vacation ownership interval and schemes, golf club, marina club, travel
and tour agent, and resort. Tanco also provides construction and money
lending services.