Friday, June 10, 2011

CIMB Research has Buy on Alam Maritim at RM1.06

KUALA LUMPUR: CIMB Equities Research has a Buy on Alam Maritim Resources at RM1.06, at which it is trading at a FY12 price-to-earnings of 8.8 times and price-to-book-value of 1.8 times.

CIMB Equities Research said Alam Maritim was trapped in a huge triangle pattern. Recently, prices hit a low of RM1.00 before buying support started to set in. This shows that the triangle support drawn from its March low is still intact.

'With prices beginning to take on the key moving averages, we think the stock is ripe for stronger rebound,' it said.

The research house said the echnical landscape is improving. MACD has staged a positive crossover while RSI is also rising, last at 50.37. Follow through momentum should pick up once the candles surpass its moving averages at RM1.06-RM1.08.

'Aggressive traders may start to nibble now while others should wait for a push above RM1.08 before taking any position. Next resistance levels are RM1.15 and RM1.25. Falling below RM1.00 would trigger our stop,' it said.

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