Tuesday, June 7, 2011

CIMB Research has Buy on KSL at RM1.83

KUALA LUMPUR: CIMB Equities Research has a Buy on KSL HOLDINGS BHD [] at RM1.83, at which it is trading at a price-to-book value of 0.8 times.

It said on Tuesday, June 7 that as KSL is still trading above its critical support trend line since its 2009 lows, there is no reason to doubt the ongoing uptrend. It appears to be forming an ascending triangle in the past three months or so.

'The odds continue to favour the bulls as long as prices stay above the key support at RM1.70 level. Only a break below this level would negate our bullish view on the stock. More risk adverse traders may opt to place their stop below the recent swing low of RM1.77.

'The breakout above the RM1.86 resistance would suggest that the next upswing is underway and could potentially hit RM2.00 and RM2.12,' it said.

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