Monday, October 24, 2011

CIMB Research has technical buy on Tomypak

KUALA LUMPUR: CIMB Equities Research has a technical buy on Tomypak Holdings at 91.5 sen at which it is trading at a FY12 price-to-earnings of 3.7 times and price-to-book value of 0.5 times.

It said on Monday, Oct 24 Tomypak may have bottomed out at the 86 sen level. Recent rebound lifted prices above its downward slopping resistance trend line and this could be seen as a prelude to more upside ahead.

'If prices can continue to hold above its 30-day and 50-day SMAs, there is a good chance that prices may re-rate towards 97 sen to 99.5 sen levels. The 200-day SMA is also a magnet for prices.

CIMB Research said traders may start to nibble now. However, it cautioned that traders should be prepared to cut loss if the 86 sen level is violated. A slight setback is its thin trading volume.

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