Monday, May 9, 2011

CIMB Research has Buy on SBC Corp at 97.5c

KUALA LUMPUR: CIMB Equities Research has a Buy on SBC Corp at 97.5 sen at which it is trading at a price-to-book value of 0.3 times.

It said on Monday, May 9 the recent pullback dragged prices towards the 61.8% FR level before the bulls made a comeback.

'Looking at the chart, we think that the stock may have found its near term bottom at RM0.82, which is also close to its 30-day SMA,' it said.

CIMB Research said last Friday, the stock also broke out of its downtrend resistance channel. This was positive and prices should re-rate soon. Immediate resistance is at RM1.04, followed by RM1.11 and RM1.21 next.

'Aggressive traders may start to nibble now to ride this recovery wave. Only a break below RM0.90 would trigger our stop,' it said.

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