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

Tuesday, January 25, 2011

Buy Malaysian Resources: HwangDBS

One of the best news for Malaysian Resources Corp Bhd (MRCB)is the RM1.2 billion Lot D project that had received approval from the Ministry of Housing for completion in 48 months vs the mandated 36 months, says HwangDBS.

"This means a possible launch in mid-2011 to diversify MRCB’s earnings away from construction, which dominated financial year 2009- 2010 forward earnings (50-75 per cent of EBIT)," adds HwangDBS.

HwangDBS expects the take-up to be strong with at RM1,000-RM1,200 per square feet, which is a discount to the adjacent St Regis.

"This will also coincide with the launch of its strata offices at Lot B (RM1.2 billion in gross development value). About 30 per cent has been sold to committed buyers," HwangDBS said

HwangDBS, however understands that there is no firm commitment for a mass rapid trnsport (MRT) station at KL Sentral, but possibly one at the Museum nearby.

Given the strengthening KL Sentral franchise, Rubber Research Institure Malaysia (RRIM) land project and its robust contract flows in 2011. HwangDBS recommends MRCB a 'buy' with target price of RM3.05 (with a 41 per cent upside). - Reuters

No comments:

Post a Comment

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

Related Posts Plugin for WordPress, Blogger...