Wednesday, June 15, 2011

CIMB Research has Buy on KBB Resources

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on KBB RESOURCES BHD [], which markets rice and vermicelli products, at 26.5 sen.

It said on Wednesday, June 15 that at 26.5 sen, the stock was trading at a price to book value of 0.6 times.

'KBB broke out of its triangle pattern yesterday. This should be near term positive. We expect prices to hit RM0.275 during the next upswing. Thereafter, prices should edge closer towards RM0.30 and RM0.33,' it said.

CIMB Research said the MACD has staged a golden cross. RSI too has hooked upward. With the candles now holding above all its key moving averages, the bulls seem to have the upper hand here.

'Risk takers may take some position now while others should wait for a push above RM0.275 before going long. Prices must hold on above RM0.25 to keep the momentum going. A slip below RM0.21 would negate this bullish

Tone,' it said.

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