Mah Sing Group (MSGB MK; RM2.42) – BUY
FY12P/E: 11.0x, P/BV: 2.2x
• Mah Sing has been hovering in a triangle pattern for the past few weeks. We
think some supports have been found near its 50-day SMA. If our count is
right, prices should inch past its 30-day SMA (now at RM2.49) very soon.
Thereafter, it should move towards RM2.58 and RM2.70 next.
• MACD is just about to turn positive. Hence, we believe this is probably the
beginning of the next upleg. Meanwhile, RSI is also above the 50pts mark.
• As long as prices stay above the RM2.26 level, we think the odds favour the
bulls. Hence, any pullback is an opportunity to accumulate. However, be
quick to cut loss if the RM2.25 level is breached.
Mah Sing Group Berhad is an investment holding company. Through its
subsidiaries, the company also manufactures plastic molded products,
operates in property development and investment, trades plastic and other
related products, and provides construction services.
Gamuda (GAM MK; RM3.79) – BUY
FY12P/E: 15.8x, P/BV: 2.2x
• Gamuda broke out of its descending wedge resistance few days ago, which
is a bullish sign. The stock is poised for further re-rating if the candles can
surpass the 50-day SMA (now at RM3.82).
• Indicators are recovering. MACD has staged a positive crossover while RSI
is also rising. Resistance is seen at RM4.00, RM4.15 and RM4.26.
• Risk takers may start to nibble now while others should wait for a breakout
above the RM3.82 level before joining the buying bandwagon. Be quick to
cut loss if the candles fall below the 200-day SMA at RM3.61.
Gamuda Berhad is an investment holding and civil engineering construction
company. Through its subsidiaries, the company provides earthwork
construction, manufactures and supplies road surfacing materials, and
operates quarry and road laying projects. Gamuda also has operation in hiring
and rental of plant and machinery, develops properties, and manufactures and
sells paper.
Parkson Holdings (PKS MK; RM5.44) – SELL
FY12P/E: N/A, P/BV: 2.9x
• Parkson has been making lower highs and lower lows formation over the
past few months. In fact, the candles have been struggling to stay above its
moving averages. With the countertrend rebound looking toppish at this
juncture, traders should do well taking some profits now.
• Technical indicators are showing signs of exhaustion. MACD histogram bars
are losing strength while RSI too has hooked downward.
• As the trend favours the bears, our strategy here is to unload on strength as
prices could ease towards RM5.19 and RM4.95 in the medium term.
However put a buy stop at RM5.74, just in case.
Parkson Holdings Berhad is an investment holding company. The company,
through its subsidiaries, operates a chain of department stores in Malaysia,
China, and Vietnam.