Being in the market at all times is not the key to profits. Being in the market when there is a clear, unconfused technical signal during a strong market, and the trader's judgment is not swayed by emotion, is a method for trading success. No matter how good the fundamentals and technicals are, stocks will have a high risk of failure during weak markets.
Friday, January 15, 2010
Gamuda (5398.KU) at Buy
Hwang-DBS Vickers Research keeps Gamuda (5398.KU) at Buy with unchanged MYR4.20 target; says construction firm's 1QFY10 net profit of MYR63 million (+46% on-year) within house expectation but below consensus. Notes 1QFY10 construction margin showed recovery inching up to 4% vs 2.6% in 4QFY09. "Property sales in 1QFY10 remained robust at MYR250 million, in spite of the reintroduction of real property gains tax, bringing unbilled sales to MYR700 million," says Hwang. Keeps net profit forecast of MYR278 million for FY10 (ending July 31), MYR446 million for FY11, MYR448 million for FY12. "At current levels, Gamuda's CY10 PE of 13.9X is at discount to rival IJM's 14.4X, a reversal from the recent 10-15% premium it used to command," says Hwang; "we see this as a buying opportunity as visibility of contract flows pick up in 2010". Stock last down 1.5% at MYR2.62.
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