Stock to Watch - FITTERS & FITTERS-WB (Possible Trend Reversal)

Stock to Watch - FITTERS & FITTERS-WB (Possible Trend Reversal)

FITTERS forming higher low and resisted by short term downtrend trendline. Buying interest can be seen recently and breakout from trendlline may rally towards 0.855 and you might see FITTERS-WB at 0.32. Positive reading from MACD and stochastic indicating that possible trend reversal in near future and we reckon the share price may rally towards the previous resistance RM1 in midterm if able to breakout RM0.855 with high volume.

Fundamental (From my friend)
Fitters's current business segment:
1. Fire services
2. Property development & construction
3. Renewable & waste -to-energy
Other than sustainable income from current properties development in the next few years, Main catalyst for Fitters' shares price will be its future major revenue generator: PVC-O pipes manufacturing. This segment will contribute positive earnings to Fitters starting 2015. Its 3 production lines, which will be ready by end 2014, will be able to produce 11,000 tonnes or 3700 km of pipes worth RM150million with another 3 production lines planned for 2015.
Existing market for pipes replacement is huge, with more than RM11billion worth of pipes due for replacement locally.
Fitters' outlook for its pipes manufacturing is bright, as PVC-O pipes are higher impact resistence and has a longer lifespan of 50 years compare to conventional steel based pipes.
Besides, Fitters has announced its plan to list its renewable energy unit, Future NGR Sdn bhd, in Singapore and is seeking to raise between $20-25mil from the IPO.
Future NGR has formed JV partnership with AHT Services GMBH, a German biomass and coal gasification expert, to bring over biomass gasification technology to SEA region.
With all the earnings catalyst for the near future, further shareholder's value will be unlocked. Fitters' potential is not justified by its low PE of 8.5 times.

Let's Watch Closely!

Any investment decisions carried out based on information, analysis, or commentary provided here is solely your responsibility. You should consult your investment advisor before making any investment decisions.

Stocks to Watch 17 - 21 nov

Stocks to Watch 17 - 21 nov

DSONIC

GREENYB

KPSCB

Weekly Update 7 - 10 October

Weekly Updates 7 – 10 Oct 2014

Long term uptrend intact. KLCI is currently well supported and waiting for rebound. KLCI most likely will stay sideway as market is cautious about Budget 2015 and possible adjustment of US interest rate. Be aware of market sentiment and traders are advised to buy on dip rather than chase high.

FBMSCAP is trading lower and resisted by 20MA. Currently it is supported and will rebound if KLCI able to rebound on this week. Traders are advised to reduce position size for new entry. Please follow your trading plan strictly if the market is not in a favourable position.

MIKROMB

Target price 1 : 0.415 (+9.3%)
Target price 2 : 0.435 (+14.4%)
Cut loss : 0.365 (-3.9%)

PENTA

Target Price 1 : 0.44 (+8.6%)
Target Price 2 : 0.47 (+16%)
Cut loss : 0.395 (-2.5%)

MCLEAN

Target price 1 : 0.275 (+15%)
Cut loss : 0.225 (-6.2%)

Stock to Watch - KGB & KGB-WA

Kelington Group BHD (KGB 0151)

Fundamental

One of the leading Ultra-High Purity (UHP) Gas and Chemical delivery solution provider within the regional footprint of Malaysia, China, Taiwan and Singapore

Business Segment

1. Design and Modelling

2. Fabrication and Installation

3. Quality testing and certification

4. Control and instrumentation

5. Maintenance and servicing

Current outstanding order-book of RM175 Million

-The Ultra High Purity mechanical and electrical services and medical system for Kang Hui Maternity Centre Services (Shanghai) Co (remaining value of RM99m)

-The total facilities management services to one of the world’s largest chip manufacturers (remaining value of RM18m)

-The UHP system design for TTE Engineering (remaining value of RM8m)

- Remaining RM50m is contributed by other semiconductors, O&G, plantation and healthcare players

Current tender-book

- Taiwan’s biodiesel contract (worth RM35m) has been delayed due to the longer-than-expected approval process, management remains optimistic in securing it by 2H2014

-Inclusive of other tender jobs for one of Malaysia’s hospitals SGD30m the tender book value has already hit RM110m.

Kelington Group BHD is one of the turn-around company which earning slipped in 2013 due to the lack of outstanding order-book. However group return to be profitability after securing an amount of project, 2.7 times as more order as to compare to FY2013. Take 6% as the average benchmark Profit-Margin, the group will be easily standing on at a comfortable profit of RM10.5 Million divided by the weighted average number of share of 191 Million, staggering around 5.4cents earning per-share. Assume it is trading at 10 times fair PE ~ it will be easily valued at Rm0.54 cents

Target Price RM0.54

Technical Analysis

KGB has challenged the previous high when I posted on 13 July 2014. However, the unstable market sentiment brought the price to retest support. The support is firm and price has rebounded from the support.

Judging from the strong trading volume and positive momentum indicators, I believe it will trigger another round of buying interest and it possible will bring the price to uncharted territory.

Target Price 1 = RM0.48 (+9.1%)
Target Price 2 = RM0.52 (+18.2%)
Cut Loss = RM0.41 (-6.8%)

Target Price 1 = RM0.25 (+18.8%)
Target Price 2 = RM0.30 (+42.9%)
Cut Loss = RM0.20 (-4.7%)

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This articles do not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided here is solely your responsibility. You should consult your investment advisor before making any investment decisions.

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