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Friday, November 14, 2008

Malaysia Market - Stock Analysis

Use Your Own Judgments, Take Your Own Risks

LCL – LCL is a prominent company involves in interior fix-out works. LCL has about 900 mln orders in hand and the current tendered projects valued at 4.0 bln. The project in hand will last for about 18 months. Most of its projects are in Arab countries especially Dubai. Recently, LCL revealed that it expected 100% growth of turnover for this year.

However, analysts did mention that they were worried about LCL’s funding problem and profit margin amidst the global credit crunch situation.

Presently, LCL is trading at about 10x of its EPS. Its price is falling now and 0.98 should be a strong support. Its overhead resistances are 1.04 and 1.06. But the charts all say LCL will move sideway in tight range at the moment.

 

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