Tuesday, June 7, 2011

CIMB Research has Buy on AFG at RM3.15

KUALA LUMPUR: CIMB Equities Research has a Buy on'' Alliance Financial Group at RM3.15 at which it is trading at a FY 12 price-to-earnings of 9.3 times and price-to-book value of 1.5 times.

It said on Tuesday, June 7 the stock has been trading in a sideways band since hitting a high of RM3.31 back in November last year. It could have formed a triangle pattern and the odds favour a breakout in the coming days if not weeks.

'With both indicators pushing on higher, we believe that a breakout run could begin soon or has already begun. Traders may opt to get in now with a stop place below RM3.09 or RM2.99 depending on one's risk tolerance level.

'A breakout above the triangle resistance at RM3.23 would likely see an increase in buying momentum.

The breakout run could take prices above the RM3.31 high to RM3.43-3.48 next,' it said.

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