Lion Corporation (LION MK; RM0.47) – BUY
FY10P/E: N/A, P/BV: 0.9x
• Based on its daily chart, it shows that Lion Corp’s share price has breached its triangle resistance yesterday on strong volume. If prices can take out its 50-day SMA at RM0.48, the stock can rally to retest the recent highs of RM0.595. Minor resistance is seen at RM0.54.
• MACD has just confirmed its golden cross while its RSI is also rising. The RSI breakout above its resistance also augurs well for the stock in the short term.
• Immediate support is seen at RM0.455, followed by RM0.42 next. Buy now on breakout with a stop placed below RM0.42.
Lion Industries Corporation (LLB MK; RM1.36) – BUY
FY10P/E: 5.2x, P/BV: 0.4x
• The stock posted a long white marubozu as it rebounded off its 50-day SMA yesterday. This bullish candle is bullish for the near term.
• With its indicators looking bullish at the moment, a test of its uptrend support turned resistance line at RM1.44 is likely. A breakout above this resistance could push the stock back towards the recent highs of RM1.55.
• However, since it is still trading below RM1.44, we are only cautiously bullish on the stock at this moment. The bulls need to push the stock past this
resistance before more upside is possible. Otherwise, more selling pressure could set in. Keep stop tight and cut losses if prices fall below RM1.20.
Kinsteel (KSB MK; RM0.975) – BUY
FY09P/E: 18.8x, P/BV: 1.2x
• The stock also pushed on higher after finding support at its 50-day SMA. The long white candle is also positive for the stock. It could continue to climb towards the upper channel resistance at RM1.04 and RM1.14.
• Both MACD and RSI signal lines have just turned positive. Therefore, we think that more upside is likely in the near term.
• The stock is still worth a buy but keep stop tight. Support is seen at RM0.885 and RM0.84.
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