Can-One advances on winning legal tussle to buy Kian Joo shares

KUALA LUMPUR (Jan 9): CAN-ONE BHD [] shares advanced in early trade on Monday after the company won the legal tussle to acquire the 146.13 million KIAN JOO CAN FACTORY BHD [] shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour last Thursday.

At 9.05am, Can-One rose 27 sen to RM1.86 with 2.01 million shares done.

Can-One announced to Bursa Malaysia last Friday that the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

The share price surged on Thursday and Friday despite the Can-One’s reply to a Bursa Securities on Thursday that it was unaware of the unusual market activity.



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OSK Research: Unisem share price may trade higher

KUALA LUMPUR (Jan 9): OSK Research says Unisem’s share price may trade higher after the strong close last Friday.

It said on Monday there is no doubt that the stock is on a downtrend since May 2010.

“But firm buying last Friday may yet spark a change in trend, and it happened on tremendous volume too, which suggest accumulation action.

“This comes on a back of slowing downward momentum, where the stock hovered just above the psychological RM1.00 for more than a month. It has even broken above the 100-day MAV line,” it said.

OSK Research said as such, purchase can be made now or preferably on pullback towards the stop-loss level of RM1.05, the low of last week.

The research house said the price target is RM1.54, which will claw back 50% of the April-Sept 2011 decline – also the low of May 2011 – and a strong move could see the price testing RM1.67, the bottom of May 2010 and high of June 2011.

“This is on the condition that the stock breaks above the 3-month high of RM1.28. In fact, a conservative trade may wait for a successful violation of the RM1.28 resistance before initiating positions, with a close below as the stop,” it said.



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HDBSVR expects KLCI to back off from 1,515

KUALA LUMPUR (Jan 9): Hwang DBS Vickers Research expects the key FBM KLCI to back off from the immediate resistance mark of 1,515 on Monday.

It said that from a technical perspective, the benchmark index could be sliding towards the first psychological level of 1,500.

“Essentially, investors may turn cautious in view of two events today: (a) a scheduled meeting between the leaders of Germany and France to talk about possible revisions to Europe’s fiscal rules; and (b) a verdict on the sodomy trial involving opposition leader Anwar Ibrahim to be delivered by the court,” it said.

HDBSVR said in terms of share price actions, there could be interest in: (a) Harvest Court Industries, after the upliftment of its designated securities status with effect from this morning; (b) Proton and DRB-Hicom, as the latter has confirmed that it has put in a bid to take control of the national carmaker; and (c) Kumpulan Hartanah Selangor, amid a weekly business report saying that major shareholder KUMPULAN PERANGSANG SELANGOR [] may privatise the company.



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CIMB Research has technical buy on Lion Corp at 18.5 sen

KUALA LUMPUR (Jan 9): CIMB Equities Research has a technical buy on LION CORPORATION BHD [] at 18.5 sen at which it is trading at a price-to-book value of 3.3 times.

It said on Monday Lion Corp is still trapped in a downtrend channel but it thinks a short term bottom may have formed. The recent sideways consolidation suggests that a base is formed near the 16.5 sen level.

“As long as prices stay above the 16.5 sen level, we advocate traders to accumulate on weakness. The next upswing is likely to push prices towards 19.5 sen and 20.5 sen. The 200-day SMA is also a magnet for prices.

“MACD signal line is rising towards the zero level while RSI has also hooked upward. Key risk to this investment is that the stock could prolong its sideways consolidation,” CIMB Research said.



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CIMB Research has technical sell on Hovid at 24.5 sen

KUALA LUMPUR (Jan 9): CIMB Equities Research has a technical sell on HOVID BHD [] at 24.5 sen at which it is trading at a price-to-book value of 1.9 times.

It said on Monday Hovid is trading at the upper band of its trading range. The resistance trend line is a level of significance and traders should not underestimate the strength of the bears.

“Technical landscape is deteriorating. MACD has staged a dead cross while RSI is dwindling towards the 50 level.

“Use any rebound towards 25 sen to 26 sen to unload on strength. Once the 30-day SMA is breached, expect prices to fall towards 23 sen and 21.5 sen. Prices need to climb above 27 sen to negate this bearish view,” it said.



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CIMB Research has technical buy on Eng Tek at RM1.69

KUALA LUMPUR (Jan 9): CIMB Equities Research has a technical buy on ENG TEKNOLOGI HOLDINGS BHD [] at RM1.69 at which it is trading at a price-to-book value of 0.7 times.

It said on Monday EngTek broke out of its consolidation pattern last Friday and it believes this is a prelude to more upside ahead.

“If we are right, the next upswing is likely to push prices towards RM1.79 and RM1.89. The 200-day SMA is also a magnet for prices,” it said.

CIMB Research said the bullish divergence on its MACD signal line suggests that buying momentum has picked up. RSI too has hooked upward.

“Buy on weakness looks like a good option here. However, always place a stop at below RM1.61-RM1.55 to limit downside risk,” it said.



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CIMB Research maintains trading buy on Muhibbah Engineering

KUALA LUMPUR (Jan 9): CIMB Equities Research is maintaining a trading buy call on Muhibbah Engineering Bhd following the latest corporate development in Asian Petroleum Hub Sdn Bhd (APH).

Last Friday, CIMB Bank Bhd, which is the financier of the APH project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.

CIMB Research said on Monday while APH has been put under receivership again, this not necessarily bad news for Muhibbah as it could lead to an alternative solution that would raise the additional funds needed to complete the project.

“The stock is trading above our worst-case target price (full provisions) of 81 sen, based on an unchanged 40% RNAV discount. The share price should be supported by potential positive newsflow on contract awards. Maintain Trading Buy,” it said.



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DRB-Hicom chief: Proton in my radar long time

GERIK (Jan 8): DRB-Hicom Group Managing Director Datuk Seri Mohd Khamil Jamil says he has been looking into Proton for a long time before submitting the proposal last year.

Speaking to reporters here Sunday, he said the focus was on the national car industry rather than the national car company.

Proton was very well equipped to rise above its game given proper handling of the company, he said.

"I think that Proton is capable with the level of technologies and expertise coupled with the products that they have now. With a touch of entrepreneurial approach, Proton is able to reach greater heights.

"If it is a bad company, I won't go after it. I think Proton is a good company, there are a lot of potentials in Proton," he said.

Mohd Khamil said that in the past 24 years, Proton had been doing very well by establishing its name in the local automotive market, and a transformation of the national car company would complement and strengthen the national automotive industry.

He said the price tag for Khazanah's 42.7 percent stake in Proton would have to be within DRB-Hicom's capacity bearing in mind that moving Proton forward would not be easy given the brisk market competition.

"At the end of the day, there is going to be a winning seller and a winning buyer. But it must be at a price that is practical, reasonable and workable," he said. - Bernama



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