Friday, August 26, 2011

CIMB Research has Technical sell on QSR Brands

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on QSR Brands at RM5.86 at which it is trading at a FY12 price-to-earnings of 14.3 times and price-to-book value of 1.9 times.

It said on Friday, Aug 26 that the fall from RM6.58 appears impulsive and the current move is likely a short term corrective rebound. Prices have rebounded to its 50%FR levels and reversed but we would not be surprised if prices climbed again to test its 62%FR at RM6.21.

CIMB Research said either way, a break below the RM5.62 levels would signal that the next downleg is underway, targeting RM4.83-RM4.90. The following support is at RM4.55.

'The stock is a sell as both its indicators are looking weak at the moment. We would review our call only if prices take out the RM6.58 high,' it said.

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