Thursday, April 14, 2011

CIMB Research has Buy on Mieco at 71 sen

KUALA LUMPUR: CIMB Retail Research has a Buy on Mieco Chipboard at 71 sen, which means it is trading at a price-to-book value of 0.5 times.

It said on Thursday, April 14 the recent pullback dragged prices towards its 50% FR level but prices have since rebounded a tad higher. A short term bottom could have been formed at 66 sen.

CIMB Research said although technical landscape is easing, the candles are holding steadily above its key moving averages. Hence, this correction could be temporary.

'We see any pullback as an opportunity to accumulate. Only a fall below 66 sen would prompt us to review our call. Meanwhile, resistance is at 75 sen and 83 sen,' it said.

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