Friday, October 28, 2011

CIMB Research has technical buy on Supermax

KUALA LUMPUR: CIMB Equities Research has a technical Buy on Supermax Corporation at RM3.26 at which it is trading at a FY12 price-to-earnings of 8.8 times and price-to-book value of 1.5 times.

It said on Thursday, Oct 27 thatthe rebound from its September’s low is still intact. Prices swung above its 30-day and 50-day SMAs to keep the bulls afloat.

“As long as the support trend line holds (now at RM3.00), we think the odds are slowly turning to the bulls. Next upswing is likely to push prices towards RM3.40 and RM3.60,” it said.

CIMB Research said the technical landscape remains positive. MACD signal line has returned to the black while RSI is above the 50pts mark.

“Any pullback is an opportunity to accumulate. However, put a stop at RM3.00 to limit downside risk,” it said.

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