Perisai Petroleum Teknologi (PPT MK; RM0.74) – BUY
FY12P/E: 13.7x, P/BV: 2.1x
• On the 11th of March, we issued a buy on weakness call on Perisai. Prices
did fall to the RM0.605 levels when it corrected after testing the triangle
resistance at RM0.675. Prices broke out of its triangle yesterday on strong
volume and close at a new all time high (on a closing basis).
• Technical landscape is looking good. MACD is still rising while its RSI is not
yet overbought, suggesting that there is still room on the upside.
• The stock remains a buy with a target price of RM0.89 based on 1.618x of
the first run, up to a high of RM0.675. Minor resistance seen around the
RM0.80 levels. As long as prices remain above the RM0.69 triangle
resistance turned support levels, we expect higher prices ahead.
Perisai Petroleum Teknologi Berhad is an investment holding company. The
company, through its subsidiaries, manufactures, supplies, commissions, and
installs corrosion control products as well as inspects and maintains pipes,
risers, and heat exchangers for oil and gas industry.
SapuraCrest Petroleum (SCRES MK; RM3.56) – BUY
FY12P/E: 16.8x, P/BV: 4.3x
• The stock remains in its consolidation triangle but we believe that it is
probably near the tail end of its consolidation. Prices are now back above
the moving averages, which is positive.
• The MACD is also holding above the zero line and could soon turn upwards
again. Its RSI also held above the 40-50pts mark, which is positive as well.
• The stock is a buy now with a stop placed below the recent swing low of
RM3.41 or RM3.39, the rising triangle support. A break above RM3.69
would likely signal that prices are heading towards RM3.90-4.00 levels next.
SapuraCrest Petroleum Berhad is an investment holding company. The
company, through its subsidiaries, charters vessels, installs offshore platforms
and marine pipelines, drills offshore oil wells, manages rigs that are involved in
drilling offshore oil wells, fabricates offshore structures, supplies equipment for
oil and gas activities, and provides offshore geotechnical services.
Time Engineering (TIM MK; RM0.485) – BUY
FY12P/E: N/A, P/BV: 1.1x
• The stock has been trading in a sideways manner for the past two years,
forming a large consolidation triangle. Prices tested the triangle support in
late February but the bulls held prices up and the recent rebound has taken
prices back above the moving averages.
• MACD is slowly inching higher while its RSI is also on the rise. Both
indicators suggest that momentum is starting to pick up again.
• We would prefer to buy on weakness but aggressive traders may opt to buy
now with a stop placed below RM0.44. Prices could potentially climb
towards RM0.535 or its triangle resistance at RM0.545 in the near term. The
next resistance is seen around the RM0.59 levels, its 2007 high.
TIME Engineering Berhad is an investment holding company. Through its
subsidiaries, the Company constructs and operates an independent open
cycle gas-fired power station, supplies and sells electricity, and manufactures
electrical switchgears. TIME also develops, manages, and provides business
to business e-commerce and computerized transaction facilitation services.