Thursday, April 7, 2011

JCY up in active trade, next target 86.5 sen

KUALA LUMPUR: Shares of JYC International rose in active trade on Thursday, April 7 as CIMB Research said based on the technical chart, the share price was building another base before making next charge towards 86.5c

At 3.18pm, JCY was up 6.5 sen to 81 sen with 27.74 million shares done while the call warrants, JCY-CC rose two sen to eight sen.

The FBM KLCI rose 3.57 points to 1,556.46.'' Turnover was 1.02 billion shares valued at RM1.30 billion. There were 403 gainers, 331 losers and 315 stocks unchanged.

CIMB Retail Research, in its technical charting outlook, had said it had a Buy on JCY I at 74.5 sen where it is trading at a FY12 PE of 8.7 times and a price-to-book value of 1.7 times.

It said on Thursday, April 7 JCY rose to a high of 79 sen after breaking out from the wedge pattern.

'At present, the stock is building another foundation before making the next charge. A breakout from its bullish flag pattern would likely push prices towards 79 sen and 86.5 sen next,' it said.

CIMB Research said MACD histogram bars are losing some pace but it added the odds still favoured the bulls. RSI too has hooked upward.

'Traders may consider going long now. To limit exposure, one can put a stop at below 72 sen, its recent swing low. A fall below the 70.5 sen support channel would indicate that a deeper correction is forthcoming,' it said.

On March 31, JCY non-independent executive director James Wong King Kheng said the the hard-disk drive manufacturer was in the midst of courting one of the world's leading electrical and electronic (E&E) companies from Japan as its new client.

He was quoted saying JCY was confident of winning over the new client.

In its financial year 2010, the company had secured contracts to supply hard disk drive (HDD) mechanical components to two new major customers in the E&E industry from Japan and South Korea.

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