Wednesday, October 5, 2011

CIMB Research has technical buy on UOA Development

KUALA LUMPUR: CIMB Equities Research has a technical buy call on UOA Development at RM1.21 at which it is trading at a FY12 price-to-earnings of 4.8 times and price-to-book value of 0.9 times.

It said on Wednesday, Oct 5 that UOA Development is still trapped in a downtrend channel but a short term bottom could have been formed.

'Aggressive traders may start to nibble now but always keep stop tight at RM1.16,' it said.

CIMB Research said the bullish divergence on its MACD indicator suggests that selling pressure has tapered off. RSI too has bounced off its lows.

'In the immediate term, prices are likely to edge closer towards RM1.27 and RM1.38. The 30-day SMA at RM1.43 is also a magnet for prices,' it said.

1 comment:

  1. Don't know what to say about this one. It's offer price in June last year was 2.52 but it's now only 1.46. *Logically* it should go up, all things being equal, to maybe 2.00 There's also a 10 sen dividend announced. Could be worth a calculated risk.