Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Friday, October 8, 2010

OSK Research maintains Buy on Dialog, target price RM1.47

Written by OSK Research Friday, 08 October 2010 08:46

KUALA LUMPUR: OSK Research is maintaining its Buy call on DIALOG GROUP BHD [] and its target price is RM1.47 based on sum-of-parts valuation.

On Thursday, Oct 7, Dialog announced the Johor approved to award Dialog the exclusivity to develop an independent deepwater petroleum terminal at Pengerang, Johor for a period of 60 years.

However, this approval is subject to the outcome of a detailed feasibility and environmental impact assessment.

“We understand that the technical part of the feasibility study has been completed and this concluded that the site is suitable for land reclamation of about 500 acres and the phased CONSTRUCTION [] of approximately 5 million cubic metres of storage capacity for the proposed terminal. Nevertheless, the environmental impact assessment is still in progress,” the research house said on Friday, Oct 8.

OSK Research said it is good that Dialog had received the “go ahead” from the Johor Government to build the independent deepwater storage terminal for oil products in Pengerang.

“This is because it will be difficult to move to the next stage of development otherwise. Hence, since the Government has given its green light, we believe it would be a matter of time for the environmental impact assessment to be completed and once done, we believe Dialog will start with the Phase 1 construction,” it added.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts Plugin for WordPress, Blogger...