Monday, August 1, 2011

CIMB Research has Technical Buy on Media Prima

KUALA LUMPUR: CIMB Equities Research has a technical Buy on Media Prima at RM2.94 at which it is trading at a FY12 price-to-earnings of 14.0 times and ''price-to-book value of 2.3 times.

It said on Monday, Aug 1 that Media Prima broke out of its consolidation triangle pattern on Friday.

'There is a good chance that prices may swing to new highs in the immediate term. After the RM2.98 level is taken out, the following resistance levels are RM3.19 and RM3.30,' it said.

CIMB Research said the technical landscape was improving. MACD has staged a positive crossover while RSI was also rising. These should bode well for the stock.

It said aggressive traders may start to nibble now while others should wait for a push above RM2.98 before going long. Always place a stop at below RM2.90-RM2.75, in case this is a bull trap.

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